So I meet with a business owner recently. We discuss his personal holdings and then move into discussing the company’s 401k. He says their current advisor has had it for about 10 years. That he’s a nice guy but not sure if he’s providing the best advice. He directs me to their CFO to talk with her about it.
So I have a nice conversation with the CFO and find out who the insurance guy is (met him before. He is nice but dumb as a sack of hammers), she says they changed plans about 3 years ago because of fund selection and then changed again last year because of price (all done because this guy recommended the changes). Always been with insurance companies though. She tells me that he comes alone to the meetings with the workers, does a good job offering education etc.
Well I look him up out of curiosity and find that he is not registered through FINRA. I thought he had to be to provide advise to the employees. Am I wrong? No one in my office knew the answer and even my wholesalers didn’t know (they deal only in the brokerage channel).
Overall it’s a good size 401k for me to get. Approx $2 mil with about 40 employees.
Any information and help would be appreciated.