Third-Party Administrator CLS Investments, wants to help educate advisers on how to grow their practices. A new program was launched called CLS AdvisorIQ which will produce white papers, reports, video sessions and general content to help financial advisers in their every day practices.
The first report in the series, “Expand Your Referral Network: Tap Into the $16 Trillion Qualified Plan Market Through Partnerships with TPAs,” shows advisers the opportunity to target retirement plans by partnering with TPAs.
Some of the points within the report include educating advisers about conducting due diligence on TPAs to ensure there is a good fit with their business model. It is also important to “ensure that the TPA has a solid track record and staff credentials and experience, as well as can provide operational efficiencies,” says the report.
In those cases it is recommended that the TPA’s track record be at least 10 years and has an experienced staff with designations such as the America Society of Pension Professionals and Actuaries. Also, advisers are advised to research whether the TPA has been audited in the past and has industry certifications. Fees are an important consideration as well and should be in line with industry averages with references from satisfied clients.
The report also says advisers need to “demonstrate to TPAs that they have a commitment to the qualified plan marketplace and a repeatable process. Advisers can develop this expertise by learning from their peers.”
“Today’s more volatile and challenging market environment requires a new approach not only to managing portfolios, but also to managing a more complex financial advisory practice,” says Todd Clarke, CEO of CLS Investments. “CLS AdvisorIQ helps advisors navigate these pressing issues, particularly as the industry is becoming more competitive, while costs are increasing. Firms that use innovative investing strategies to better position themselves, both for attracting new business as well as gaining efficiencies, will be the ones that continues to succeed.”
CLS plans to introduce other topics and issues close to advisers needs. Topics include working with an ETF strategist, target-date funds versus managed accounts, ERISA requirements and retiree income, for example. The goal is to have about one report per quarter.
Joel Kranc is Director of Kranc Communications, focusing on business communications, content delivery and marketing strategies. He has written and worked in the retirement and institutional investment space for 17 years covering North American markets, large institutional pensions and the adviser community.
