DRESHER, Pa., March 16, 2017 /PRNewswire/ -- Ascensus, the nation's largest independent retirement plan and college savings services provider, has reported that data from its recordkeeping platform shows that the use of fee-based compensation models continues to grow among financial advisors.
According to Ascensus data, only 19% of the new plans on its platform had a fee-for-service compensation structure in 2011. Today, more than three quarters of new plans sold on the Ascensus platform fall into the fee-for-service category. The push for more transparent pricing—that is, pricing that allows clients to easily understand exactly which services they're paying for—leads Ascensus to believe that more advisors will also look to convert their existing businesses from commission- to fee-based models.
"Ascensus was the first independent recordkeeper to offer a scalable, fee-based solution for financial advisors," states Michael Narkoff, executive vice president of sales at Ascensus. "Our unparalleled experience in this area can help advisors align their practices with new industry standards and the needs of their clients."
Ascensus offers plan sponsors of all sizes access to low-cost share classes that have historically been thought to be available only for larger 401(k) plans. In addition, Ascensus' conflict-free pricing philosophy ensures that changes to a client's investment menu have no effect on recordkeeping fees. This allows advisors to fulfill their fiduciary responsibilities while offering clients the best lineup at the lowest possible cost.
When it comes to providing education for fee-based models, Ascensus regional vice presidents (RVPs) are always ready to assist advisors in creating customized business solutions. When needed, these individuals will even accompany advisors to employer meetings to offer support and guidance.
"I'm proud to say that Ascensus' team of RVPs is second to none when it comes to fee-based expertise," says Narkoff. "They have all the tools to easily take advisors from exploration through implementation, whether those advisors are working with a fee-based model for the first time or are looking to understand the potential benefits of moving from a commission- to a fee-based model."
Ascensus is the largest independent retirement and college savings services provider in the United States, helping over 7 million Americans save for the future. With more than 35 years of experience, the firm partners with financial institutions to offer tailored solutions that meet the needs of financial professionals, employers, and individuals. Ascensus specializes in recordkeeping, administrative, and program management services, supporting over 47,000 retirement plans, over 3.8 million 529 college savings accounts, and a growing number of ABLE savings accounts. It also administers more than 1.5 million IRAs and health savings accounts and is home to one of the largest ERISA consulting teams in the country. For more information about Ascensus, visit www.ascensus.com.
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