Fiduciary Responsibility

Frye Financial CenterCreating, Protecting and Preserving Wealth

www.fryefinancial.com

Your Fiduciary Responsibility…

As a retirement plan sponsor and fiduciary, you are obligated to manage risk in compliance with the law, while providing a cost-effective, financially sound retirement plan. As qualified retirement plan & ERISA specialists, Frye Financial Center can guide you in the fulfillment of these responsibilities.

The Employee Retirement Security Act of 1974 (ERISA) defines four basic duties that a fiduciary must carry out to be in compliance:

Exclusive benefit rulePrudent man/expert ruleInvestment diversification Compliance of the plan document

In addition to these basic duties, a fiduciary has other responsibilities relating to participant communication, document retention and destruction, prohibited transactions, employer security and real property and bonding.

At Frye Financial Center, we specialize in assisting clients manage the burden of understanding these complicated requirements. You can rely on us, as your retirement plan consultants, to provide the expertise, programs and services you need to meet all of your fiduciary responsibilities.

How we can help.

Employee Education

PROVIDERREVIEW/

PLAN AUDIT

Investment Consulting

Our Role As Advisors

We help you weigh and prioritize retirement program features and benchmark your provider.

We assist in reviewing your current plan design and can offer suggestions that seek maximization of your plan features.

We offer qualitative and quantitative reviews of investments using a documented process to reduce fiduciary liability.

We develop a customized strategic education program for your employees that includes providing investment advice to plan participants.*

PLAN DESIGN

INVESTMENT CONSULTING

EMPLOYEEEDUCATION

At Frye Financial Center…

*Advisory services offered through Linsco/Private Ledger

Who’s an Investment Fiduciary?

InternalInternal ExternalExternal

A person who… Has discretionary authority over plan investments Exercises any control over plan assets Gives investment advise for compensation

TrusteePlan CommitteeBoard of DirectorsOfficers Responsible For Investments

RIA’s/Investment AdvisorsBrokers if they offer Investment Advice

Uniform Fiduciary Standards of Care

TEXT TEXT TEXT TEXT1. Know standards, laws and trust provisions

2. Prepare investment policy statement

3. Diversify portfolio assets

4. Use professional money managers (“prudent experts”)

5. Control and account for investment expenses

6. Monitor the activities of service providers

7. Avoid conflicts of interest and prohibited transactions

Frye Financial Center Consulting Process

Analyze current situation

Step 1

Design Optimal Program

Step 2

Formalize Investment Policy

Step 3

Implement Policy

Step 4

RebalanceMonitor & Supervise

Step 5

Copyright 2000. Foundation for Fiduciary Studies

STEP 1-Analyze current situation

Review current plan structure Analyze current investment and menu options Compare investment management fees to industry averages Plan design consultation Review current education program

TEXT TEXT

STEP 2-Design Optimal Program

Establish Goals & Objectives– Principal Purpose of the Plan– ERISA & 404 (c)

Asset Allocation– Current & Model Asset Allocation– Efficient Frontier & Optimal Asset Allocation– Asset Allocation Methodology

Investment Criteria for Hiring/Firing Manager– Create Methodology– Implement

STEP 3-Develop Investment Policy Statement

Fact Sheet-Investment Committee Members, Consultant, Trustee and Provider

Map out goals of the program Role of Investment Committee, Consultant and other providers Criteria for including/excluding asset classes Criteria for including/excluding investment options Becomes a living document that can be passed onto new committee

members

An Investment Policy Statement should contain:

STEP 4-Implement Solution

• Determine which asset classes will be available to participants.– Can Model Portfolios add value?

• Conservative• Moderate• Aggressive

• Select investments in compliance with the Investment Policy Statement.

STEP 4-Implement Solution

Strategic Education Plan incorporating:– Enrollment Meetings– Targeted Education Campaigns– Ongoing Education/Communication Messages– Financial Planning, 529 Plans, Roth IRA’s– Advanced Investment Consulting Services 

STEP 5-Monitor and Supervise

Frye Financial Center will provide detailed quarterly performance reports…– Adherence to Investment Policy Statements– Performance versus appropriate style and universe– Risk-return measures– Ongoing review to ensure all risk points along efficient

frontier are covered– Review of investment fees

The Frye Financial Advantage

While other financial planners, brokers or insurance agents sell qualified retirement plans, most do not have the expertise or support in place to offer the comprehensive servicing Frye Financial Center has been providing our corporate and non profit pension plan clients for over 25 years. Our team has the skills, experience and ERISA knowledge to make your plan successful and to help you avoid any plan-related risk.

FRYE FINANCIAL CENTER20900 West Dixie HighwayAventura, FL 33180305-931-3200 office305-931-9383 faxwww.fryefinancial.comCreating, Protecting & Preserving Wealth

Call us today for a complimentary consultation