Practice Structure Fees/Revenue Does Your Practice Use a Defined Contribution Aggregator for Support? l Yes l No 47% 53% 2019 How Fees Are Disclosed to Plan Sponsor Clients 2019 Contract Annual review ERISA* 408(b)(2) disclosure statement Fee disclosure statement Most Common Defined Contribution Aggregators Global Retirement Partners (GRP) Financial Resources Investment Advisors Arthur J. Gallagher & Co. Pensionmark Financial Group NFP CAPTRUST RPAG SageView Advisory Group CBIZ Retirement Plan Services Other providers Do You Have a Written Business Plan That Governs Your Practice? 2019 2019 l Yes l No 2018 82% 81% 18% 19% Do You Provide Individual Advice or Wealth Services to Plan Participants? 2019 2018 l Yes l No 80% 62% 20% 38% Do You Offer Health Savings Account (HSA) Consulting Services? l Yes l No, but planning to l No 36% 47% 17% 2019 Yes No 2018 2018 Adviser salary Broker/dealer services Staff salaries General expenses Tools and services 2019 Marketing expenses Travel expenses Compliance expenses All other expenses Form ADV Requests for proposals 21% 15% 11% 11% 9% 4% 4% 4% 2% 19% 2018 91% 82% 82% 83% 67% 70% 67% 65% 52% 50% 52% 36% *Employee Retirement Income Security Act How Advisers Are Paid for Qualified Plan Business 2019 Hard-dollar/Flat fee (regardless of size) Fees based on assets ERISA budget/ERISA reimbursable Per project Commissions/12b-1 fees (flat fee) Per participant Commissions/12b-1 fees (variable) 2018 91% 81% 89% 92% 57% 46% 51% 38% 17% 23% 17% 11% 13% 14% Average Allocation of Revenue, by Expense 2019 2018 37% 37% 14% 22% 14% 18% 10% 7% 5% 4% 4% 3% 3% 3% 2% 2% 10% 5% Whether Compensation Varies Based on Products Or Services Offered 2019 2018 42% 39% 58% 61% planadviser.com November-December 2019 | 27http://www.planadviserdigital.com/planadviser/november_december_2019/TrackLink.action?pageName=27&exitLink=http%3A%2F%2Fplanadviser.com