Over the past two years, fees charged by financial advisers to new mid- and large-market defined contribution/401(k) clients have been shrinking at an alarming rate. This decline is driven by a number of factors. As with many other trends, it is likely that deflationary pricing will move downmarket. More than ever, it is essential that advisers clearly define their value proposition to employers and participants who, for the first time, will be able to easily determine what they are paying as a result of the new disclosure regulations – or risk being commoditized competing on fees.
