Getting hired as a plan sponsor's advisor comes down to fit — it's one part meeting a plan sponsor's scorecard, one part effective communication, and one part gut instinct on the part of the committee. (Photo: Shutterstock)
Plan advisors are finding that more and more plan sponsors are using requests for proposals (RFPs). It's a trend that's here to stay.
RFPs offer an opportunity for plan advisors to show sponsors how great they are. But there are certain things advisors need to know up front to avoid making some big mistakes.
NAPA 401(k) Summit speakers Greg Middleton of CAPTRUST, Laurie Coleman of Spencer Fane LLP, Cindy Degulis of Retirement Playbook, and Matt Hawes of Morgan, Lewis, & Bockius LLP offered views from, respectively, advisory, HR, advisor liaison, and attorney perspectives. They discussed how to navigate the RFP process and offered advice about what works and what doesn't.
4 key things advisors need to know and accept about the RFP process
- Advisor RFPs are here to stay as part of the sale process.
- RFPs are “a detail-oriented exclusion process” — don't give a committee an excuse to boot you.
- Before you walk into the finals, the committee has been doing their homework for the last 12 weeks.
- Getting hired comes down to fit — it's one part meeting a plan sponsor's scorecard, one part effective communication, and one part gut instinct on the part of the committee.
How the RFP process works
Generally the process begins with a kickoff meeting where the plan sponsor committee, and any helping intermediaries such as attorneys or advisor liaisons go over objectives. If an attorney is assisting with the process, he or she might make sure the committee is considering what kind of relationship they want with an advisor, whether it's a fiduciary one or not, and review and document the RFP process.
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