The need has never been more important in the 401(k) space. So why don’t more advisors get it?
Ken Burtnick, Senior Product Manager at Paychex, discusses the expansion of their services in the fiduciary space and the confusion surrounding the differences between 3(38), 3(21), and 3(16 )products.
- Paychex has expanded its services in the fiduciary space, offering new 3(38) and 3(21) products, and aiming to help advisors navigate the confusing landscape of fiduciary services.
- Advisors can utilize Paychex’s product suite to understand the differences between 3(38), 3(21), and 3(16) products and choose the most suitable option based on their home office’s regulations.
- The new fiduciary regulations have prompted advisors to reevaluate their management strategies and seek options that provide fiduciary protection for themselves and their clients.
- Limited general knowledge exists about the 3(16) concept, which focuses on providing fiduciary protection for the administrative role of employers and plan sponsors.
- Paychex’s tools and products aim to educate advisors and clients about the differences and benefits of 3(38), 3(21), and 3(16) products, helping them make informed decisions.
- The expansion into the fiduciary space by Paychex reflects their commitment to supporting advisors in managing risk and ensuring fiduciary protection for their clients.
- Through discussions and interactions with advisors, Paychex aims to increase awareness and understanding of the various fiduciary options available, including the lesser-known 3(16) concept.