Guidance sought on revenue-sharing funds

Advisers are looking to the Department of Labor for guidelines about how to handle revenue-sharing funds that could be refunded to plan sponsors in 401(k) plans. As more advisers are beginning to charge employers a flat fee for services, they’re not able to receive revenue-sharing fees and it’s difficult to know how to handle these issues, said Samuel T. Brkich, chief counsel with The Newport Group based in Heathrow, Fla. Mr. Bkrich spoke today at a panel at the Center for Due Diligence Conference in Scottsdale, Ariz. entitled, “Transitioning from salesperson to businessperson.” There are a number of tax issues that pertain to revenue-sharing funds and Mr. Brkich said it will be helpful to get insight from the DOL about how to handle these issues. “If it is a fiduciary who is receiving revenue sharing, they are required to return revenue sharing to the plan,” Mr. Brkich said. Once plan sponsors realize how much money they could recoup from regaining revenue sharing fees, many are eager to do so, said Jason Chepenik, a certified financial planner and managing director with Chepenik Financial in Orlando, Fla.