2009 Efa Introduction


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A very brief introduction to ERISA Fiduciary Advisors, Inc.

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2009 Efa Introduction

  1. 1. ERISA Fiduciary Advisors, Inc.“Protecting Plan Sponsors from Fiduciary Liability”<br />Investment Advisory & Retirement Plan Consulting<br />A Registered Investment Advisory Firm<br />
  2. 2. High<br />Discretionary Advisor<br />ADVISORY SERVICES providing fiduciary, discretionary advice and plan level services and support<br />Fiduciary Advisor<br />ADVISORY SERVICES providing fiduciary, nondiscretionary advice and some plan level support<br /> SPONSOR LIABILITY PROTECTION<br />Consulting Advisor<br />INVESTMENT SERVICES providing non-fiduciary, non-discretionary information and little plan level support<br />-<br />Reporting Advisor<br />INVESTMENT SERVICES providing nondiscretionary data and support<br />-<br />Low<br />High<br />CLIENT VALUE<br />Intermediary Marketplace<br />ERISA Fiduciary Advisors (EFA) will act as a…<br /><ul><li>Discretionary or Nondiscretionary Investment Fiduciary,
  3. 3. 404(c) Fiduciary and
  4. 4. Qualified Fiduciary Advisor (QFA) </li></ul>“Protecting Plan Sponsors from Fiduciary Liability”<br />
  5. 5. Who We Are<br />ERISA Fiduciary Advisors, Inc. (EFA) was founded with the basic understanding that plan sponsors have significant fiduciary liability when sponsoring qualified retirement plans. This liability is personal in nature, cannot be eliminated, and can only be reduced through proper plan management. EFA specializes in the implementation of a complete fiduciary management process. EFA recognizes the worthy endeavor of assisting participants reach their personal retirement goals. Unlike other service providers EFA actually steps up to the plate and accepts fiduciary liability, in writing. Thus, EFA will work with you to construct a retirement program that meets the specific expectations of your company, participants and the federal government.<br />EFA is an Independent Registered Investment Advisory Firm that specializes in working with Qualified Retirement Plan Sponsors and Participants. As a predominantly fee based consultant we work with a variety of products that may of may not provide revenue sharing. EFA is interested in working with high-quality providers that are recognized by independent industry experts as leaders in record keeping, administration, education and asset management.  EFA is neither in the business of pushing products nor promoting vendors for a commission. <br />EFA&apos;s exclusive goal is to assist Plan Sponsors and Participants in reaching their retirement goals & objectives through proper plan and investment management. EFA is willing to work with your existing provider to implement a full service fiduciary program.<br />“Protecting Plan Sponsors from Fiduciary Liability”<br />
  6. 6. What We Do<br />“Protecting Plan Sponsors from Fiduciary Liability”<br />
  7. 7. DOL Questions<br /> <br />The Department of Labor has published 10 questions that they believe plan sponsors should ask when hiring an advisor for their retirement plan. These questions can be found at www.dol.gov. We have answered those questions below and would be happy to discuss the answers in detail should you have any additional questions.<br /> <br />1. Are you registered with the SEC or with a state securities regulator as an investment advisor? If so, have you provided me with all the disclosures required under those laws (including Part II of Form ADV)? <br />Yes, Please see ADV Brochure<br /> <br />2. Do you have relationships with investment firms, investment or mutual funds or individual money managers that you recommend or consider for recommendation for consideration? If so, describe those relationships.<br />  <br />No, ERISA Fiduciary Advisors, Inc (EFA) is an independently owned and operated, fee based investment advisory and retirement plan consulting firm and 100% of our retirement plan revenue comes from fully disclosed fees; we are not dependent on nor are we tied to fund choices or any other special arrangements.<br /> <br />3. Do you or a related company receive any payments from money managers you recommend, consider for recommendation, or otherwise mention to the plan for our consideration? If so, what is the extent of these payments in relation to your other income (revenue)?<br /> <br />No, EFA receives fee income paid directly from the plan’s trustee/custodian or the plan sponsor on a monthly or quarterly basis.<br /> <br />4. Do you have any policies or procedures to address conflicts of interest or to prevent these payments or relationships from being considered when providing advice to the plan sponsor?<br />  <br />Yes, EFA discloses all potential conflicts to clients. Each advisor signs a Code of Honor Acknowledgement annually. The following items address some key conflicts that exist in the investment advisory business.<br /> An Investment Advisor or related party is selling services to the very same Investment Managers that they have been hired to monitor and evaluate:<br />EFA does not provide advisory services to ANY investment managers. 100% of our clients are plan fiduciaries.<br /> <br />An Investment Manager is associated with a custodian, broker-dealer, and or shareholder services firm; or an Investment Manager uses soft-dollars for any purpose other than investment research: <br />EFA reviews such relationships regularly and monitors revenue sharing arrangements through the use of a analysis tools. <br />“Protecting Plan Sponsors from Fiduciary Liability”<br />
  8. 8. DOL Questions<br />  5. If you allow plans to pay your consulting fees using the plan’s brokerage commissions, do you monitor the amount of commissions paid and alert plans when consulting fees have been paid in full? If not, how can a plan make sure it does not over-pay its consulting fees?<br />  <br />EFA does not use brokerage commissions to offset any pricing. We invoice directly to the plan or the plan sponsor. If brokerage commissions are available, then we will help our client set up an “ERISA budget” or “account&quot; at the plan level to collect them. The plan’s trustees would then be responsible for directing their use for the plan.<br /> <br />6. If you allow plans to pay your consulting fees using the plan’s brokerage commissions, what steps do you take to ensure that the plan receives the best execution for its securities trades?<br />  <br />We do not use brokerage commissions to offset fees. See answer to question #5.<br /> <br />7. Do you have any arrangements with broker-dealers under which you or a related company will benefit if money managers place trades for their clients with such broker-dealers?<br /> <br />No. We do not set up these kinds of arrangements. This would represent a conflict of interest and is not appropriate from our perspective. Any revenue sharing from any source would be passed back to the plan and its use would be directed by the plan’s trustees.<br />8. If you are hired, will you acknowledge in writing that you have a fiduciary obligation as an Investment Advisor to the plan while providing advisory services? <br />Yes, The Service Agreement confirms ERISA Fiduciary Advisors, Inc. as a fiduciary to the plan. <br /> <br />9. Do you consider yourself a fiduciary under ERISA with respect to your recommendations to the plan?<br />  <br />Yes, as an investment fiduciary to the plan, the work that we perform on your behalf and the recommendations that we make will be considered a fiduciary act.<br /> <br />10. What percentage of your plan clients utilize money managers, investment funds, brokerage services or other service providers from whom you receive fees?<br />0.0%<br /> <br />“Protecting Plan Sponsors from Fiduciary Liability”<br />
  9. 9. ERISA Fiduciary Advisors, Inc.<br />A Registered Investment Advisory Firm<br />  <br />For additional information <br />please feel free to call or visit our website:<br />Toll-free: 866-606-4015<br />www.EFAdvisor.com<br />Thomas B. Bastin, JD, LLM, AIF®, CEBS<br />President & General Counsel<br />1160 Birchwood RoadWeston, Florida 33327<br />Direct: 954-385-5331<br />Fax: 954-208-9910<br />Email: tom@efadvisor.com<br />Brad L. Larsen, CRPS, AIF®, PRP<br />Executive Vice President<br /> 532 Colorado Avenue<br />Stuart, FL 34994<br />Direct: 561.722.4511<br />Fax: 877-587-7571<br />Email: brad@efadvisor.com<br />“Protecting Plan Sponsors from Fiduciary Liability”<br />