Products February 9, 2007

CDM Retirement Consultants Offers Fee Transparency Tools for Advisers

CDM Retirement Consultants, Inc. has come out with two new programs, the CDM Level Compensation Program and the CDM Fee-Based Program, to help advisers comply with fee transparency regulations.
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With the Level Compensation Program, advisers are able to choose from a menu of fund families/share classes that offer either 25 or 50 basis points, across the board, as 12b-1 compensation, of which the adviser gets 100% of the compensation.

Other benefits of the compensation program include:

  • Revenue sharing amounts paid to CDM are credited against administration and record keeping charges, and excess amounts are credited back to the plan;
  • Fund flexibility and the lack of any proprietary requirement, allow for the development of a competitive menu fund options within a plan.
  • The plan sponsor is able to manage fiduciary responsibility by determining and justifying adviser compensation.

According to the release, the CDM Fee-Based Program offers:

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  • Flexibility through an open architecture fund and share class selection;
  • Excessive revenue sharing and 12b-1 amounts are credited back to the plan;
  • Easier management of expenses through fund and share class flexibility;
  • The independence to act in any consultative capacity agreed to with the plan sponsor.
  • Flexibility through open architecture fund and share class selection.
  • Excess revenue sharing and 12b-1 amounts are credited back to the plan.
  • Easier management of expenses through fund and share class flexibility.

More information about both new CDM Programs, including pricing and available fund selections, is available here

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