What are the main characteristics of the three classifications of recordkeeper business models (service classes)?
Service Class I – Scope: Full-service recordkeeping including investments and administration services. Bookkeeping for retirement plans’ trading transactions and individuals’ accounts (the major activity in recordkeeping) is bundled along with the firm’s other proprietary fiduciary support services that include, but are not limited to, investment options such as mutual funds and separate accounts, trading and cashiering, asset custody, transfer agency, trust, participant enrollment and investment advice. Plan compliance and administration services may also be offered. Service Class II – Scope: Full-service recordkeeping and third party administration services, through multiple alliances. Bookkeeping for retirement plans’ trading transactions and individuals’ accounts is performed in house. In order to offer a complete service to fiduciary organizations, firms in this service class are allied with one or more other firms that deliver such services as investment options, asset custody, t
