Legal analysis: Why the Yale 401(k) letters, limits aside, should raise an alarm to plan sponsors
Ayres may not have it all letter perfect but his basic points have a legal basis
Indeed plan sponsors beware. If the brokerage industry and product vendors are not responsive to the needs of the plan sponsor who is held to a fiduciary standard of care on behalf of their employees, then could there not be a better case for RIAs to fill the leadership vacuum in support of professional standing the plan sponsor demands?
Large scale institutionalized support for fiduciary standing is more likely going to come from very large RIAs like CapTrust or New England Pension Counsel which advise well over $100 billion in assets. This level of expert fiduciary counsel can not be replicated in a brokerage format regardless the size of the broker/dealer.
Disaffected brokers who seek professional standing may have no choice but to seek affiliation with expert counsel.