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ERISA Advisor Evaluator

ERISA Advisor Evaluator. CFDD 2009 ADVISOR CONFERENCE October 5-7 th , 2009 The Fairmont Scottsdale Princess – Scottsdale, AZ Presented by: Phil Chiricotti, CEO & President, CFDD David Witz, AIF®, Managing Director, FRA/ PlanTools. Collaboration:.

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ERISA Advisor Evaluator

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  1. ERISA Advisor Evaluator CFDD 2009 ADVISOR CONFERENCE October 5-7th, 2009 The Fairmont Scottsdale Princess – Scottsdale, AZ Presented by: Phil Chiricotti, CEO & President, CFDD David Witz, AIF®, Managing Director, FRA/PlanTools

  2. Collaboration: • The ERISA Advisor Evaluator (EAE) Application Will Be Built By PlanTools, LLC & Integrated Into The Existing PlanTools™ Technology Platform • Access To The EAE Portal Will Initially Be Through The CFDD’s Website • CFDD Will Be The Marketing Engine That Targets Plan Sponsors Through Various Outlets & Provides Marketing Intelligence For Retirement Plan Specialists In The Network • PlanTools™ Will Be Responsible For Technology, Development, Support & RFP Customization Engagements • PlanTools™ & CFDD Will Collaborate On Research, White Papers, Guest Articles & Speaking Engagements • CFDD Will Launch New EAE Newsletter Focusing On Sponsor’s ERISA Duties, Liability, Claims, Settlements, Litigation & Advisor Evaluation Tips

  3. EAE Objectives: • Facilitate The Consolidation Of Retirement Plan Advisory Services • Drive Business To Specialists In The CFDD’s Network • Assist Plan Sponsors With Their Fiduciary Obligations • Professionalize The Advisor Search Process • Increase Sponsor Efficiency & Reduce Burden • Provide A Documented Process That Meets ERISA Standards • Enhance Value Proposition Of Qualified Advisors

  4. Why EAE: • Mature Markets & Intense Competition • Traditional Telemarketing & Marketing Services Are No Longer Effective • Sponsors Don’t Understand the Difference Between Advisor Categories • No Current Solution/Service For Evaluating ERISA Plan Advisors • ERISA Requires Plan Sponsors To Retain The Services Of Independent Experts When They Lack Internal Expertise • 20% Of Retirement Plans Lack An Advisor • Over 80% Of Retirement Plans Are Serviced By Generalists • The Majority Of Generalists Will Be Replaced By Specialists • More Than 10% Of Sponsors Are Currently Seeking An Alternative Advisor

  5. Participation Standards For EAE Database • Meet Minimum Criteria • Complete An EAE Profile • Be A Dues Paying Member • Follow The Rules

  6. The CRITERIA (Individual, Team Or Independent Firm) • Registered Investment Advisor (State, SEC Or Dually Registered) • No Criminal, Civil, Or Disciplinary Action During Preceding 5 Years • E&O Insurance In Place With Coverage For Fiduciary Services • $25 Million In Retirement Plan Assets Under Advisement • At Least 10 Qualified Plans • 5 Years Of Retirement Plan Advisory Experience • 50% Of Gross Revenues Derived From Retirement Plans Business • Written Advisory Agreement • Flexibility To Accept ERISA Fiduciary Status In Writing • Investment Analysis Resources/Automation • At Least One Professional/Industry Related Designation

  7. CONFIDENTIALITY • For Pre-Population Purposes, Advisors Will Have Access To Standard RFP Questions In Advance • Advisors Will Not Have Access To The Profiles Of Other Advisors, Their Uploads Or RFP Answers • Access To The Database Of Advisors Is Strictly Limited To Paid Plan Sponsor Clients • Advisors & Or Sponsors Violating The Confidentiality Criteria Will Be Banned From Participation

  8. Advisor Services/Benefits • Profile Listed In Qualifying Database • Add Team Members At Low Cost • Flexibility To Upload Brochures & Other Information • Pre-Populate & Save Standard Questions • Efficient Way To Participate In RFP Search • Low Cost Marketing • National Exposure To Plan Sponsors • Benefit From CFDD’s Marketing Efforts • Marketing Intelligence & Research • What is Working & Why

  9. Plan Sponsor Services/Benefits • Access To Pre-qualified Advisor Database • Filter To Identify Advisor Candidates • Scoring Preferences For Advisor Prioritization • Access To All Advisor Profiles, Brochures, Uploads & Other Info • Ability To Include Non-participating Advisors For Comparison • Standard RFP/RFI Templates • Customization Of RFP/RFI Templates • Support Service Included In Base Pricing • Optional RFP Management Service • Five (5) RFP/RFI Submissions/Responses Included In Base Pricing • Scoring of RFP/RFI Answers

  10. Steps • Acknowledge Compliance Criteria • Pay Dues • Complete Advisor Profile • Upload Other Optional Information • Pre-populate Standard RFP Questions In Advance For Efficiency • CFDD Marketing Engine Activated • Respond to RFP/RFI Request – Accept Or Decline With Reason • Sponsor & Plan Specifics Identified Under Confidentiality Agreement • Advisor Must Respond Within Stated Time Frame • Advisor May Be Interviewed Before Selection • If Advisor Is Selected, Advisor Must Provide The Reason • If Advisor Is Not Selected, Plan Sponsor Must Provide The Reason

  11. Advisor Pricing • Annual Renewing Fee • Prior to December 31, 2009 • Lead Advisor cost @ $1,000 • Additional team members @ $100 • After December 31, 2009 • Lead Advisor cost @ $1,500 • Additional team members @ $250 • Violation Of Compliance Criteria Will Result In Immediate Termination With No Refund. • Protecting Your Proprietary Information Is Important

  12. Plan Sponsor Pricing Plan SizeRangeCost Micro Plan <$1 Million $ 750 Small $1 to <$10 Million $1,000 Mid $10 to <$100 Million $1,500 Large $100 to >$250 Million $2,000 Mega $250 Million or more $2,500 Base pricing includes five (5) RFP/RFI responses. If an Advisor declines to participate, the Plan Sponsor may submit an unanswered request to another advisor. Additional requests available on an incremental fee basis.

  13. Phil ChiricottiCEO & PresidentThe Center for Due DiligenceP.O. Box 8 Western Springs, IL 60558630-662-0284phichi@earthlink.netwww.thecfdd.com David J Witz AIF®, Managing Director Fiduciary Risk Assessment LLCPlanTools, LLC10612-D Providence Rd., Suite 752Charlotte, NC 28277704.564.0482dwitz@fraplantools.comwww.fiduciary-risk.com END

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