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Certification
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Fiduciary Certification
For Investment Stewards, Advisors, Managers, and Fiduciary Advisers
A CEFEX fiduciary certification is an independent recognition of a fiduciary's conformity to all Fiduciary Practices and criteria. It implies that a fiduciary can demonstrate adherence to the industry's best practices, and is positioned to earn the public's trust.
The fiduciary certification is performed by a qualified CEFEX Analyst, and reviewed by the CEFEX Registration Committee to ensure complete impartiality.
A successful certification process, as decided by the CEFEX Registration Committee, results in:
- a CEFEX certificate being issued
- registration on CEFEX’s public database, under Registered Firms at www.cefex.org
- permitted use of the CEFEX mark in both print and web form.
Scope of Registration
The scope of registration on a CEFEX certificate is implemented using similar principles to those used by the International Organization for Standardization (ISO). The scope is an important and necessary element of a registration program because it describes the services addressed in the CEFEX assessment. Clients and prospects of CEFEX-registered firms should carefully review the scope when performing due diligence on a firm.
Investment Advisors
CEFEX registration is a demonstration of adherence to all fiduciary practices contained in the handbook: Prudent Practices for Investment Advisors. A CEFEX-certified Advisor is an acknowledged fiduciary, and may include Advisors who assume responsibilities as defined in ERISA §3(38). The scope of registration typically lists the types of clients (eg. DC Plans, DB Plans, 403(b), etc.) served by the Investment Advisor.
Investment Advisors certified by CEFEX will also receive a copy of a legal opinion issued by Reish & Reicher of Los Angeles, Calif. to CEFEX regarding the certification process. The legal opinion states, in substance, that a firm receiving an Investment Advisor certification will have demonstrated, as of the date of the certification, that it has practices and procedures in place that equal or exceed the investment fiduciary requirements of the Employment Retirement Income Security Act of 1974 (ERISA).
Click here to download a sample of this opinion.
Fiduciary Advisers
CEFEX registration is a demonstration of compliance with the requirements of the Pension Protection Act, specifically final rule §2550.408g-1, pertaining to the furnishing of investment advice to participants and beneficiaries. This registration includes the audit of any applicable eligible investment advice arrangements, which would be listed in the scope.
Investment Managers
CEFEX Registration is a demonstration of adherence to the fiduciary practices contained in the handbook: Prudent Practices for Investment Managers. A CEFEX-certified Manager is an acknowledged fiduciary. The scope of registration typically lists the asset classes (eg. fixed income, large cap equity, etc.) managed by the Investment Manager.
Self Assessments
Fiduciaries can determine their
readiness for a certification assessment by performing a “Self Assessment of Fiduciary
Excellence: SAFE”. Please download the appropriate SAFE below, or perform an on-line
SAFE by clicking here:http://safe.actifi.com
Certification for Non-Fiduciaries
Investment Support Services
This CEFEX certification is an independent recognition of a firm's adherence to the prudent practices required to provide support to fiduciaries. It implies that a firm can demonstrate adherence to the industry's best practices, and is positioned to earn the trust of client fiduciaries.
The scope of registration is a discrete list of the support services provided, including identification of where fiduciary responsibility is assumed, if applicable.
Complaint Procedure
Please click here to download the CEFEX Complaint Procedure.
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