Fee-based 401k advisors continue their march in the defined contribution space, and BidMoni wants to give ‘em a push.
The SEC-registered investment advisor that provides technology to the employer-sponsored retirement plan market “has been steadily opening up the defined contribution space marketplace to fee-based advisors” since it launched its FiduciaryShield product last summer (NOT to be confused with Bradenton, Florida-based ERISA plan design and implementation firm of the same name).
Similar to the model that’s been employed in the consumer space for some time (think LendingTree and Rocket Mortgage), BidMoni’s FiduciaryShield allows 401k plan RFPs to be submitted by multiple providers in one centralized location for a true apples-to-apples evaluation to ensure suitability for plan sponsors and participants.
It looks to save time and resources in choosing the right provider while maintaining plan quality and a high fiduciary standard “so plan sponsors and 401k advisors can determine which plan is best, document the entire process to stay compliant, and automatically monitor plans on an ongoing basis,” according to the company.
The firm announced a series of enhancements recently that will empower advisors and their firms to change the face of the 401k industry.
Specific BidMoni technology enhancements to the FiduciaryShield platform include:
- FiduciaryShield Wellness Reports, which look for over 20 risk factors based on public filings providing advisors a printable report to discuss with plan sponsors,
- A FiduciaryShield proposal request platform for efficiently shopping custodial, recordkeeper, and Third-Party Administrator (TPA) providers, and
- FiduciaryShield 401k Prospector, which allows advisors to conduct customized searches of all plans and plan sponsors.
“For years, excessive paperwork and inefficient processes have impeded advisor growth in the ERISA space,” CEO Stephen Daigle said in a statement. “With FiduciaryShield, firms can not only cultivate sales growth, they can simultaneously support improved advisor and firm compliance. These things can and should go hand in hand.”
Scale
The FiduciaryShield platform is available to any-sized retirement plan, including 401k, 403b and 457b plans.
Financial advisors can bring the service directly to their clients even if they are not retirement plan experts.
BidMoni has also partnered with First Ascent Asset Management to provide an independent 3(38) manager for advisors and firms that are not comfortable serving in this capacity.
“RIA compliance and legal counsel have always had to worry about the risk of ERISA litigation,” Daigle added. “But if the right parameters are set on the front end and firms can actually document adherence, that risk is greatly mitigated. We’re confident our technology will bring ease to what was once a burdensome task.”
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
