Fewer than 1% of financial advisory firms have been awarded the coveted Center For Fiduciary Excellence (CEFEX) Certification in the United States. Although the term “fiduciary” has become more commonly used in our industry, the definition and expectation of fiduciary responsibility has unfortunately been muddied and it is hard to trust you are getting the best service possible. That is why CEFEX exists: to certify that a firm is acting at all times in your best interest, and the best interest of your employees.
A CEFEX certified 401(k) advisor has voluntarily submitted to a rigorous audit of its adherence to global fiduciary standards. This independent verification is even more important for employers with the responsibility of making investment decisions on behalf of other people. As an employer, you have the legal obligation to conduct regular due diligence on service providers, and when you select a CEFEX certified 401(k) advisory firm, that job has been done for you, giving you 401(k) peace of mind.
By Joe Bert, Certified Financial Planner™