Number of experienced defined-contribution plan advisers to grow with DOL fiduciary rule

The most specialized retirement plan advisers control nearly 70% of adviser-held DC assets

Jul 31, 2017 @ 11:29 am

By Greg Iacurci

Experienced retirement plan advisers represent a small fraction of the overall number of advisers working with defined-contribution plans, but they control a staggering amount of the assets.

Together, the elite DC-plan advisers, the most specialized group, and core advisers, a middle-tier group, represent 10% of all advisers getting paid on or managing a DC plan, but hold 68% of the adviser-controlled plan assets, according to figures from The Retirement Advisor University.

"Emerging" advisers, the least specialized of the bunch, represent the remaining 90% of DC-plan advisers and remainder of the $3.56 trillion in adviser-controlled plan assets. DC plans hold $7 trillion in aggregate.

Market forces and regulation, including the Labor Department's fiduciary rule, are squeezing some emerging advisers out of the DC market, and the core and elite group will likely swell as a result, according to some observers.

"I could see elites doubling in the next three to five years," said Fred Barstein, chief executive of The Retirement Advisor University. "And I could see the same thing with the core."

Defined-contribution plan advisers by the numbers
Adviser typeNo. of advisersNo. of DC plansAssets
Elite2,50057,500$937.5 billion
Core22,500200,000$1.5 trillion
Emerging225,000292,500$1.125 trillion
Total250,000550,000$3.56 trillion
Source: The Retirement Advisor University, 2017
Note: The total number includes advisers getting paid on or managing a DC plan. "Emerging" advisers have fewer than five plans and $25 million in plan assets. "Core" advisers have at least five plans and $25 million in assets. "Elite" advisers have at least 10 plans and $250 million in plan assets.

0
Comments

What do you think?

View comments

Recommended for you

Featured video

INTV

Behind the scenes of InvestmentNews' Icons & Innovators

Editor Fred Gabriel and special projects editor Liz Skinner discuss how the editorial team selected the final lineup of honorees.

Video Spotlight

Help Clients Be Prepared, Not Surprised

Sponsored by Prudential

Recommended Video

Path to growth

Latest news & opinion

RIAs struggle to keep clients grounded amid stock market euphoria

With equities at record levels, financial advisers are confronted with realities of greed and fear.

Regulators showing renewed interest in cracking down on investment fees

SEC, Finra targeting high-fee share classes, 12b-1 fees and failure to give sales load discounts and waivers to investors.

Tax update: Brady says sales tax deduction in final bill

Taxpayers will be able to deduct state income taxes or state sales taxes in addition to property levies — up to a $10,000 cap.

Complexity of new indexed annuities causing concern

Insurers are using 'hybrid' indices as a way to differentiate themselves, but critics contend the products are less transparent, more confusing and don't add financial benefit.

Critics say regulation hasn't curbed overly rosy projections for indexed universal life insurance

They say rule didn't go far enough and more stringent measures may be necessary.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print