#FAidea – Large broker-dealers expand how they work with small 401(k) plans

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Firms such as UBS Wealth Management Americas, Raymond James, LPL Financial, Morgan Stanley Wealth Management, Merrill Lynch Wealth Management and Ladenburg Thalmann Asset Management Inc. have expanded the ways in which their adviser forces can offer fiduciary investment services to employers sponsoring small 401(k) plans.

One goal is to give firms a way to manage risk among relatively inexperienced retirement plan advisers who want to work with 401(k) plans and gives more advisers a way to provide fiduciary services to clients as a greater number of clients are seeking them, experts said.

Another goal is to give specialized 401(k) advisers, who tend to work with larger plans, a more cookie-cutter — and profitable — way to serve small-market clients.

Last month, for example, UBS launched a product called Retirement Plan Manager, which places the fiduciary responsibility for investment management with the home office rather than the adviser.

Source: financial advisors