Dalbar has introduced a registered fiduciary designation for 401(k) advisers, the 401(k) RF Designation, who have obtained the skills and training to perform at that level of care. Training for the designation is provided by qualified training organizations or through a self-study program.
Holders of the 401(k) RF Designation receive credentials that permit plan sponsors to meet the regulatory requirements of a prudent selection of advisers. The designation was designed to comply with Department of Labor regulations with regards to fee disclosure, investment advice and the proposed definition of what constitutes a fiduciary.
“The new DOL regulations make it increasingly difficult for non-fiduciary advisers to provide valued services to 401(k) plans,” said Louis S. Harvey, president of Dalbar. “Investment advice will soon be the exclusive domain of fiduciaries, and the RF will be the mark of distinction for fiduciaries.
The RF Designation is authorized by the Fiduciary Standards Board.