space . Certification

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.



Please click here to download Fiduciary Practices for Investment Advisors

Many Advisors claim to be fiduciaries, however since the topic is often confusing to investors and trustees, these claims are difficult to prove.

Does the Advisor:
• accept fiduciary responsibility in writing?
• have prudent investment processes in place and in use?
• use best in class Service Agreements?
• make complete disclosures regarding potential conflicts of interest?
In general, can the Advisor demonstrate adherence to the highest standard of fiduciary care? CEFEX-certified Advisors can.

Investment Advisors certified by CEFEX will also receive a copy of a legal opinion issued by Reish & Reicher of Los Angeles, CA 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.

The Benefits of Certification include:

1. Increased Assets Under Advisement:
Certification increases market differentiation and investor (individual or institutional) confidence. With the recent increase in investor anxiety due to scandals, bankruptcies, and lawsuits and the increased press from the introduction of the PPA, fiduciaries can differentiate themselves by assuring investors of their excellent practices.

2. Risk Management:
Most investment litigation involves the omission of certain fiduciary practices and/or prudent investment procedures, as opposed to the commission of certain acts. Certification helps your firm maintain evidence of relevant practices.

3. Reduced Costs:
CEFEX-certified firms are eligible to receive discounts on professional liability insurance premiums of up to 25%. The certification acts as evidence that your firm is a lower risk for insurance carriers. See Program Summary

4. Competitive Advantage:
'Fiduciary responsibility' has become a watchword with trustees, investment committee members, and even retail investors. Investment Advisors who can communicate clearly how they manage investment decisions to a defined fiduciary standard, will enjoy a major advantage over competitors.

See quotes from CEFEX-certified firms.

Self Assessment

Investment Advisors 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

Self-Assessment of Fiduciary Excellence for Investment Advisors

Fiduciary Adviser:

A person that renders investment advice for a fee or other compensation, direct or indirect, to IRA accounts or ERISA retirement plan participants (per the Pension Protection Act of 2006).

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 if applicable.




Quotes from CEFEX-certified firms.

“The Ingham Group uses our CEFEX certification to articulate our fundamental belief in total disclosure and best fiduciary practices. We go out of our way to educate our clients and prospects on the importance of sound fiduciary practices. We believe this certification should be a standard requirement in the selection of Investment Advisors, much like how SAS70 has become required in the recordkeeping industry. CEFEX certification has been instrumental to Ingham Group maintaining its client base and opening many new opportunities. Ingham group has experienced a 30% growth in AUM in the past year, thanks to our positioning, and proven track record.”
Ken Ingham, AIFA, President and CEO, Ingham Group, Miami, FL

“Slavic Mutual Funds Management Corporation has won many RFQ’s recently, and we can attribute our success to be due in part to our CEFEX certification. Since Slavic operates as a broker/dealer, an investment manager, a TPA and an advisor, we also believe the CEFEX process has helped improve the accountabilities within our organization. The better delineations between our disciplines has helped sustain improved corporate performance.”
John Slavic, President, Slavic Mutual Funds Management Corporation, Boca Raton, FL

“Unified Trust Company, NA became CEFEX registered in October 2006. Unified sought registration as an important independent assessment of our commitment to follow a prudent, consistent and standardized process based on Fiduciary Best Practices for Investment Advisors as promulgated by CEFEX. This independent verification means our clients, and those considering our services, can be confident that critical components of an investment strategy have been properly implemented. This can be especially important for retirement plan sponsors in today’s environment of increasing complaints and/or lawsuits alleging fiduciary misconduct. Being able to show adherence to this independent standard has given Unified a distinct advantage when competing with other investment advisors. Successful retirement outcome is the cornerstone of Unified’s philosophy. As a fully discretionary trustee, we believe a prudent best practices approach improves investment outcomes for our clients and increases their financial goal success probability. Progress towards success can and should be measured. We have done extensive research on success probabilities and have been able to show that implementing the prudent best practices necessary for CEFEX registration improves the probability of success. Unified believes registration is more than a differentiator in the sales process; rather it will make a true positive difference in the most important consideration, successful outcome. In the five months since Unified became CEFEX registered, assets under management have grown by 12.5%. In that same period, the S&P has added just over 5%. While the difference is likely due to many factors, we feel that our outcomes based approach based on prudent best practices is the overarching reason. The CEFEX registration is the distinctive sign to the marketplace that Unified Trust Co., N.A. unquestionably follows the highest fiduciary best practices standards.”
Dr. Gregory Kasten, MD, MBA, CFP, CPC, AIFA, CEO Unified Trust Company, NA.


“ The CEFEX Analyst’s assessment of our firm’s custodian function was thorough and produced many useful benefits to us. We have a much better appreciation of our clients’ perspectives of us. The CEFEX experience has caused us to alter the way we tell our firm’s service delivery message. Our CEFEX certification has won more business for us than we even hoped.”
Denys Pearce, Managing Director, Plan B Trustees Limited, Perth Australia.