Negative consent procedure
9. Include negative consent to fee increases.
Consent, notice and new disclosures to the plan sponsor are all required when service provider fees change.
“Adopt a negative consent procedure so that a client may ‘vote with his feet’ if he or she does not like a new fee structure,” Ms. Elliott wrote. Negative consent makes it easier for the plan sponsor to cut ties in a relationship that no longer meets the needs of the plan.