Redrock is a CEFEX Certified Fiduciary Plan Advisor in Las Vegas

Why Settle For Any old Fiduciary?

NEWSFLASH: Redrock Wealth Management is a fee-only CEFEX certified financial advisor firm in the great city of Las Vegas!
Our CEFEX certification validates the high standards we practice in our 401k & retirement plan advisory business.

What is CEFEX certification?

Founded in 2006, CEFEX is the Center for Fiduciary Excellence. They provide an independent third party verification of a financial advisory firm’s practice, policies and procedures. Their primary function is to validate the firm is acting as a true fiduciary—at the highest level—in every way possible.

Many financial advisors say they’re a fiduciary, but very few will put that in writing. Fewer still will spend the extensive amount of time and money to actually have it verified from an independent third party auditor.

We believe our CEFEX certification is critical to delivering the absolute best in retirement, financial, and investment planning for all of our private wealth management and 401k plan clients.

Why is CEFEX certification important?

The CEFEX certification helps ensure well-defined and documented processes are in place. These structured processes are more likely to result in investment portfolios that:

Are better designed and have lower costs
Structured due diligence processes force rational investment and service selection, thereby ensuring the best value for the 401k plan.
Can deal with a wider range of investment conditions
Investment procedures are not hostage to market swings. The process anticipates all types of conditions and can rationally account for investment outcomes.

Make fewer strategic mistakes
Well-defined policies virtually eliminate deficiencies in portfolio management. The decision rules would not allow it!

Better manage client expectations through education, reporting and disclosure
Disclosure alone is often insufficient to help investors. The fiduciary process leads to a more educated client who can better understand the components of their portfolios. The process should enable greater personalization, based on risk preferences and financial needs.
Voluntary adherence to a fiduciary process can narrow the gap between compliant and non-compliant behaviour, allowing regulators to focus on significant deficiencies and identify intentional bad behaviour.
Excerpt from CEFEX presentation to SEC Office of Compliance Inspections and Examinations, Feb. 4, 2014.

CEFEX certification adds value at the plan level

While CEFEX certification helps ensure your 401k plan investments are top-notch, the processes we embrace also add value to plan fiduciaries and participants:
Higher probability of enhanced portfolio outcomes
Documented, repeatable processes are more likely to generate higher returns over time because they are not dependent on timing, luck, and “in-fashion” or un-substantiated decisions.

Increased transparency
Far too many plan advisors operate like black boxes. They cannot (or will not) describe their investment process, thereby avoiding accountability to the investor. The prudent process has nothing to hide.

Increased oversight
Independent fiduciary assessments supplement our internal compliance practices and mandatory statutory regulatory compliance. The rules associated with statutory compliance are designed to constrain bad conduct, but it is impossible to set rules for every situation. Independent fiduciary assessments focus oversight on process, so virtually all situations are covered.

Competitive influence
As a CEFEX certifed advisor we strive to earn your 401k plan business on fiduciary principles, not insurance or investment product sales. This helps us stand out from other plan advisors in a crowded marketplace!

So what exactly Does the CEFEX certification process entail?

The CEFEX certification process essentially validates a financial advisor’s current practices, policies and procedures. If firm standards aren’t up to par, the certification process issues opportunities for improvement. Only after a CEFEX certification board has reviewed all of the facts and findings do they grant the actual certification to an applicant.

The CEFEX process:

Validates practices and processes
Includes review of file administration, information gathering, custody, brokerage, and best execution, using a consistent evidence-based methodology.
Assesses structure, systems, support and reporting 
Analyzes the Investment Policy Statement and the due diligence process, comparing the advisor’s investment line-up to a standard set of fiduciary screens. The assessment also reviews how conflicts of interest, if any, are managed and disclosed.

Reviews risk assessment
Reviews how asset allocation is based on capital market inputs and risk assumptions used by the advisor. How does the advisor firm manage risk and return characteristics of the portfolio?

Samples client files
Verifies that client files contain the service agreement deliverables, records, and outputs of the investment management process for the specific client.

Is complementary to regulatory exams
The CEFEX process-based assessment takes a different approach from the regulator’s rules-based approach. A background check including regulatory, legal and bankruptcy history is also conducted.

What are the CEFEX certification benefits to clients?

The biggest benefit is knowing your 401k plan advisor is on the forefront of the industry and never settles for second best! We’re constantly honing our skill and education to help ensure we’re providing top-notch financial advice and guidance.

Is the person you entrust with your finances a CEFEX certified financial advisor?

You’ve saved, you’ve sacrificed, you’ve spent a lifetime getting into position to retire. It’s crunch time! Are you willing to entrust your financial future to an advisor who hasn’t put the same efforts into being the very best they can be for you? You know you should require a fee-only advisor; you’ve probably even heard the term “fiduciary”. It’s time to raise your standards for retirement planning and investment management to a level very few advisors can handle.