THERE IS PERHAPS NO advisor partner more essential to a smooth plan operation than those responsible for the establishment and maintenance of individual participant and plan records. And yet recordkeepers, more than most, have long been squeezed by the pressure to reduce prices, while at the same time needing to not only maintain but to increase their spend on infrastructure, technology, people – and more recently, cybersecurity. This at a time when heightened scrutiny of long-standing practices such as revenue-sharing are placing even more pressure on income streams. In fact, litigators have already opined in any number of the so-called excessive fee suits not only about how this service should be priced, but also what a “reasonable” fee for these services should be. Not helping matters? That even the industry’s most ardent champions routinely refer to these crucial services as a “commodity.” It remains to be seen what the impact of state-run IRA plans for private sector workers will be – not to mention the much-anticipated “opening” of open multiple employer plans, should that ever come to fruition. Little wonder that “consolidation” has long been the order of the day in this challenging field. O course, consolidation has orked to the advantage of some providers, who have managed to broaden their target markets with key acquisitions. In some cases that has left a vacuum for those who now seek to specialize in particular markets, notably those serving smaller plans. In fact, for an industry that has ostensibly been roiled by consolidation of one form or another for at least 30 years now, there remains a remarkably robust, though arguably shrinking, roster of key players. As you’ll see on the pages that follow… — Nevin E. Adams, JD
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