When an advisor meets up with potential clients, the first thing they normally say is that they are doing well with their present advisor and they don’t wish to change. This is until however, the new advisor discusses with these individuals, what service they should expect from their advisor.
The point is that lots of people do not know what services their advisor should provide for them. Trying to compare the service of one advisor to another is not an easy task, and currently there is no benchmark in this sector against which to compare.
There are however five indications that can be used, to gauge the level of satisfaction you are getting from the relationship with your advisor.
1. First you should determine whether the advisor you are dealing with, has set any service goals, against which, his client may assess his service. Some advisors meet up regularly with their sponsors, and discuss with them the goals to be set for the coming financial year. The advisor will then set up a calendar which contains deadlines related to compliance as well as things that he will deliver.
2. Assess whether the sponsor is satisfied, with the fiduciary protection, which the advisor is providing him. The advisor should be able to identify a cautious process for decision making, for his plan sponsors, and he should be able to collect information needed and then assis his clients in making an informed decision.
3. You should assess whether the advisor has had any positive impact on the rate of employee participation and average deferrals.
4. A plan sponsor should be given all the fee-related information from the advisor. The advisor should therefore discuss all the fees with the sponsor, in an open line of communication.
5. Some sponsors are so happy with their advisors that they are willing to serve as a reference, to new and potential clients. References coming from previous clients who are satisfied with the service serve as a good gauge for the advisor.
Reference: http://www.planadviser.com/magazine/article.php/4250
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