The Consolidated Appropriations Act: An opportunity for benefits advisors
There are several actions that benefits advisors can take to help clients understand their fiduciary responsibilities.
By Hugh O’Toole |
July 07, 2021 at 12:54 PM
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The Consolidated Appropriations Act (CAA) legislation clearly identifies your clients as fiduciaries. However, most employers/plan sponsors aren’t aware that the law was passed and don’t always understand what the implications are to them and their plans. By evolving your practices to incorporate CAA, you will provide significant value to your clients while driving additional growth for your business.
How do we know this? Because we saw this scenario play out in the retirement industry with the Pension Protection Act. As with CAA, the Pension Protection Act identified the employer as the plan fiduciary. Advisors who leaned into the opportunity solidified their relationships with their clients and, as a result, significantly increased their market share. The new regulations and reporting obligations within the CAA legislation provide an identical opportunity for benefits advisors who are ready and willing to take the lead.