What is the Fiduciary Adviser Network?The Fiduciary Adviser Network (FAN) is a turnkey solution for advisers seeking to promote advice services to plan sponsors and their participants. The program performs the independent third party review and audit required to provide advice to retirement plan participants. FAN enables advisers to meet the requirements of the Pension Protection Act of 2006, including:

• Training required to offer and serve as a Fiduciary Adviser
• Due diligence documentation required by plan fiduciaries
• Access to employers through the Fiduciary Adviser Network
• Continuous business development through conferences and seminars
• Promotion through advertising and public relations

What does the FAN Program Encompass?Fiduciary Adviser Training

The Fiduciary Adviser Training component covers the role and responsibilities of the Fiduciary Adviser and the process of selling to an employer. During this course, the adviser learns how to:

• Engage a prospective client (employer)
• Address most frequently asked questions
• Make sales presentation to prospective client (employer)
• Efficiently identify best prospects for personal advice
• Extend the employee relationship to the total household
• Capture and consolidate rollover funds
• Prepare and maintain the required documentation and disclosures
• Adhere to guidelines of fiduciary responsibility and prudent man rule
• Prepare for required selection, review and independent audit required for plan sponsors to have fiduciary protection
• Explain the differences between a Fiduciary Adviser and a non-fiduciary adviser.
• Explain differences between conflicted and un-conflicted Fiduciary Advisers.

ERISA Training

The ERISA Training component covers the key areas of ERISA that Fiduciary Advisers are expected to know. This training is limited to knowledge required to advise plan participants and does not include the advanced knowledge required to advise plan sponsors. During this course the adviser learns how to:

• Avoid excess contributions and top-heavy problems
• Manage vesting and company stock restrictions in the retirement plan
• Make choices among plans when multiple plans are available
• When participants should use default investments
• Take best advantage of employee loans
• Identify when fund line-up needs to be changed
• Take advantage of features such as in-force distributions, Roth 401(k) and catch-up contributions

Investment Selection Training

The Investment Selection Training component prepares the adviser to give advice that meets the PPA standards of generally accepted investment theories within the investment options available in the retirement plan. During this course the adviser learns how to:

• Work with participant to develop financial goals
• Advise participant on the appropriateness of various risk levels
• Recommend asset allocations that are appropriate to goal and acceptable risk level
• Explain the basis of recommendation to participant

Certification

Certification provides the screening and documentation required by the plan sponsor to meet the fiduciary obligation of prudent selection of a Fiduciary Adviser. The certification process consists of:

• Background Check that discloses past regulatory incidents or other publicly available information that is pertinent to the ethics of the adviser.
• Client Results that invites the advisers existing clients to report on the advisers’ past performance in the quality of advice, trust, financial results, satisfaction with services provided and communications. Clients report on:
  
  
  • Length of time adviser has provided services to the client
  • Clients’ overall rating of adviser
  • Clients’ satisfaction with specific services provided by adviser
  • Clients’ rating of financial results to date
  • Extent to which adviser has put clients’ interest ahead of adviser’s own
  • Clients’ satisfaction with support of the adviser
  • Clients’ profile
• Knowledge Test to establish knowledge of ERISA. The knowledge test is waived for holders of other qualified certifications.

 
How does the Certification Process Work?Advisers undergo a due diligence process that produces the documentation required to qualify for the prudent selection as a Fiduciary Adviser. The certification is updated annually as required by the Pension Protection Act (PPA).

There are four steps to the due diligence before the adviser is certified for one year and receives a certificate, documentation, listing in Network and the right to advertise his/her rating. Failure at any step will terminate the certification process.

The four steps are as follows: 

• Application
• Background Check
• Client Experience Assessed
• Knowledge Test

What is the Cost of the FAN Program?Annual Certification Cost per Adviser:

How Can I Learn More?To learn more about FAN, please call 617-723-6400 or visit www.Fiduciaryadviser.com.