The majority of the focus on the recent disclosure regulations issued by the U.S. Department of Labor (DOL) has been on the fees and other forms of compensation that must be disclosed to retirement plan fiduciaries and participants.

However, an important aspect of the regulations that is often overlooked is the requirement that service providers must justify compensation by describing the services they provide. Keep in mind that the overriding concept behind the regulations is to ensure that arrangements made in connection with qualified retirement plans are "reasonable." In order to do so, fiduciaries and participants alike must know what services they are receiving in exchange for the fees paid.

This requirement presents an opportunity for broker/dealers and financial advisors to document their value proposition to qualified retirement plan clients. Establishing value for service is important both at plan inception and once the plan is up and running, especially when ongoing compensation is earned for providing services to the plan.