PlanSponsors, June 2005
Joseph Adams was quoted regarding how plan sponsors increasingly view the practice of offering investment advice to retirement plan participants as a manageable risk. "There's a clear reason to offer advice—almost everyone needs it," he observes, "But the reasons not to do it are: Are we capable of selecting the people to provide the advice? How are we going to monitor them? Will people really use it—regularly? Is there a risk of prohibited transactions? There's still a significant portion of the employer base that says, 'Well, we can articulate more clearly what might go wrong if we offer investment advice than if we don’t, so we’re not going to do it.'"