Craig Rosenthal, Senior Vice President at Fiduciary Benchmark doesn’t mince words.
In this interview from the 2018 Fi360 Conference in San Diego, John Sullivan from 401k Specialist speaks with Craig Rosenthal, Senior Vice President at Fiduciary Benchmarks. The conversation revolves around the concepts of “value” vs. “value-add” in the retirement plan advisory space, emphasizing how advisors can effectively demonstrate their worth to clients and plan sponsors.
Rosenthal commends the conference attendees for showcasing their value through the use of fiduciary-focused tools and processes, which support both best-interest standards and the reasonableness of advisor compensation. He notes an increasing focus on services like ERISA 3(38) arrangements, managed accounts, and model portfolios, explaining how these can add measurable value when used with a sound fiduciary process.
The discussion shifts toward regulatory changes, specifically the evolving influence of SEC rules and the Department of Labor (DOL) fiduciary rule. Rosenthal points out that while the DOL rule may be “on life support,” its impact persists—advisors and firms continue to adopt its principles, not out of obligation, but because they believe it represents the right approach. He warns that although some regulations may fade, litigation risk remains high, making it prudent for advisors to document fiduciary practices before any legal action arises.
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