Practice Structure Are you personally involved in recommending funds for qualified plan clients? 2018 l Yes l No 2017 96% 95% 4% 5% Do you have a written business plan that governs your practice? 2018 2017 2018 l Yes l No 81% 83% 19% 17% Do you provide individual advice or wealth services to plan participants? 2018 l Yes l No 2017 62% 67% 38% 33% Fees/Revenue How fees are disclosed to plan sponsor clients 2018 Annual review Contract 408(b)(2) disclosure statement Fee disclosure statement Form ADV Requests for proposals Average allocation of revenue (by expense) 2017 83% 81% 82% 79% 70% 65% 65% 69% 50% 48% 36% 32% How advisers are paid for qualified plan business 2018 Fees based on assets Hard-dollar/Flat fee (regardless of size) ERISA budget/ERISA reimbursable Per project Commissions/12b-1 fees (flat fee) Commissions/12b-1 fees (variable) Per participant 2017 92% 88% 81% 80% 46% 50% 38% 35% 23% 32% 14% 26% 11% 8% Adviser salary Broker/dealer services Staff salaries Partner salary General expenses Travel expenses Marketing expenses Tools and services Compliance expenses Other 2018 2017 28% 30% 22% 20% 18% 16% 9% 9% 7% 9% 3% 3% 3% 2% 2% 5% Whether compensation varies based on products or services offered 2018 Yes No 2017 39% 43% 61% 57% 4% 2018 2017 2017 Are you involved in recommending DC plan providers for your qualified plan clients? 2018 2017 l Yes l No 94% 96% 6% 4% Are you a fiduciary to clients' retirement plans? 2018 2017 l Yes, a 3(38) l Yes, a 3(21) l No 72% 67% 24% 30% 4% 2018 2017 3% 2018 2017 2018 2017 l Yes l No 51% 63% 49% 37% 2017 Are you a fiduciary to plan participants? 2018 2017 2018 4% 3% 3% planadviser.com November-December 2018 | 33http://www.planadviserdigital.com/planadviser/november_december_2018/TrackLink.action?pageName=33&exitLink=http%3A%2F%2Fplanadviser.com