Scott Holsopple, president Smart401k, was quoted in the 401kWire article, "For Participant Advice, Advisors Can't Be All Things to All People. " Holsopple participated in the fi360 National Conference on a panel discussing separating the roles of participant level advice and plan sponsor level advice. "How are you going to prudently select and monitor yourself? What benchmarks are you going to set for success? And, if you don't meet those benchmarks, how are you going to fire yourself?" Holsopple asked in response to plan-level advisors offering participant-level advice.
While the conflict could be managed if the plan sponsor took an active role monitoring the advice provider, Jason Roberts of Reish and Reicher, also on the panel, cautions, "There's no prohibition on it but there's ways you can run afoul." The panel concluded that allowing firms offering participant-level only advice to partner with plan advisers would be of benefit.
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