Advisor Defined Session - Paul Neveu

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PANEL: ADVISOR DEFINED SESSION

• Dan Chabott, Dan Chabott, Sr. Partner, Clear Sailing Investment Group• Eric Drossner, Director of Retirement Services, The Haverford Trust• Mark Sulpizio, Partner, Innovative Investment Fiduciaries, LLC

Moderator: Paul Neveu President, BPAS Plan Administration & Recordkeeping Services

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You run into one of your friend’s parents at a soccer game. It turns out s/he’s the CFO of a 300-life company near you and is on the RP committee for the plan. It’s currently with a national bundled provider. S/He says things are going ok. Then, you have the opportunity for a 45 to 60-second elevator pitch on your product.

Go.

What types of providers do you compete with the most in your footprint (advisors, bundled providers, insurance companies, banks, TPAs, etc.)? What has been your recent experience? Which situations are you winning? Losing?

What’s the biggest challenge you face with prospects? (Getting in the door, getting them to see there’s a problem, getting them to feel a sense of urgency, etc.)

Without a doubt, 408(b)(2) has created momentum for some clients to just “go with the cheapest menu” with the blinders on—Active versus passive funds, asset classes, etc. How do you deal with it, and what is your philosophy? Is it a client-by-client situation?

To what extent are your plans using the same menu, or how much variation exists across the plans?

3(21) versus 3(38) in your book.

Comments?

What’s the biggest challenge you face with your current clients? (servicing, retention, participant needs, problem resolution, etc.)

Have you had turnover of key people at any of your current clients? (CFO, President, Head of HR)

What is your strategy when that happens?

How do you deal with it?

DC Plan Brokerage Windows

Yes? Only with arm twisting? Or, just say no?

How many of your clients embrace the higher purpose of the plan as a wealth building tool? And, how many merely see it more as a “check the box” to recruit and retain employees?

How often do you do plan update meetings?

What is your usual format / strategy?

What is your solution for advising participants?

Guidance? Education only? Hard advice?

What is your slant on value versus fees in the post 408(b)(2) world?

Are clients mostly interested in the cheapest solution, or are they willing to pay more for services and investments if they perceive they are getting value?

In a typical 100-participant, $5 million plan, what percent of your annual activities are devoted to working with HR or the RP committee, versus working individually with plan participants?

Do you use a CRM for servicing retirement plan clients?

What is it?

How do you use it?

Models vs Target Date Funds vs Lifecycle Funds In one sentence, which do you favor in your programs?

Let’s say that plans might change providers for two reasons: 1. Due diligence reasons: fiduciary, service, technology, cost,

product features, payroll considerations, etc.2. Reasons the client may not admit to: personal relationship

with an advisor or broker, new management team with prior loyalties, bank leveraging lending relationship, etc.

What mix of 1 and 2 do you see in typical bids of $5M plans? $20M Plans?

How do you compare services and fees with a prospect?

What tools or approaches do you use?

Do you still have any RR/BD plans (un-level compensation)?

What is your plan for them?

Based on the lawsuit announced Monday, the $9 M plan, what’s your reaction?

How do you think it impacts plan sponsors?

How have you used technology as part of your business (pre-recorded presentations, web casts, tablets, multi-media, group training, etc.)?

Have you had clients who went to another provider, then had remorse about their decision?

Why?

Other Questions?

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