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HomeMy WebLinkAboutPension General_Documentation_Tab 04_11/28/2005~ODA~ ~O~I~.~U~N<,JF = ,~.~~ ~, simplifying your investment decisions • MEMORANDUM TO: All Trustees FROM: Joe Bogdahn RE: SEC / DOL Questionnaire for Pension Consultants DATE: 10 August, 2005 Attached please find our firm's response to the questionnaire provided in the Department of Labor and the Securities and Exchange Commission's `Tips for Plan Fiduciaries' white paper. As you may note, our responses are quite brief. As an independent firm, we do not participate, and have not participated, in the practices being investigated by the SEC. I mention the have not, for we know that many plans have been significantly harmed through past practices of several consulting firms, who now are scrambling to change • their methods. Please note that: • Since the inception of our firm, we have extended a standing invitation to all of our clients to have their auditors review our financial records and tax returns as assurance that we do not collect any `hidden' revenues. • We eschew all forms of soft-dollar payments, as we know that such relationships cloud objectivity and opens the door for potential conflicts. • We do not participate in any `pay-to-play' schemes. • We serve as a fiduciary to our clients without caveat or exception. We take our responsibilities to our clients very seriously. We enjoy what we do, and are working hard to create a firm and an environment that we and our families can be proud of. Please do not hesitate to contact us if you have any questions, or visit www stoppayin~hiddenfees.com for additional resources. • 340 West Central Avenue • Suite 300 • Winter Haven, Florida 33880 Telephone (863)293-8289 • Facsimile (863) 292-8717 www.bogdahnconsulting.com DOL /SEC Tips for Plan Fiduciaries Pension Consultant Questionnaire 1. Are you registered with the SEC or a state securities regulator as an investment adviser? If so, have you provided the Fund with all the disclosures required under those laws (including Part II of Form ADV}? Bogdahn Consulting, LLC is a Registered Investment Advisory firm, registered with the Securities Exchange Commission and the State of Florida. We provide out Form ADV to all clients with our proposed agreements, and upon request. 2. Do you or a related company have relationships with money managers that you recommend, consider for recommendation, or otherwise mention to the plan for consideration? 1f so, describe those relationships. NO. 3. Do you or a related company receive any payments from money managers you recommend, consider for recommendation, or otherwise mention to the plan for consideration? If so, what is the extent of these payments in relation to your other income (revenue)? NO. 4. Do you have any policies or procedures to address conflicts of interest or to prevent these payments or relationships from being considered when you provide advice to your clients? YES. 5. If you allow plans to pay your consulting fees using the plan's brokerage commissions, do you monitor the amount of commission paid and alert plans when consulting fees have been paid in full? If not, how • can a plan make sure it does not over-pay its consulting fees? Bogdahn Consulting is compensated in hard dollars only. 6. If you allow plans to pay your consulting fees using the plan's brokerage commissions, what steps do you take to ensure that the plan receives best execution for its securities trades? We do not use brokerage commissions and do not accept soft dollar payments. We believe this type of relationship clouds objectivity and opens the door for potential conflicts. 7. Do you have any arrangements with broker-dealers under which you or a related company will benefit if money managers place trades for their clients with such broker-dealers? NO. S. If you are hired, will you acknowledge in writing that you have a fiduciary obligation as an investment advisor to the plan while providing the consulting services we are seeking? Absolutely! 9. Do you consider yourself a fiduciary under ERISA with respect to the recommendations you provide the plan? Absolutely! 10. What percentage of your plan clients utilize money managers, investment funds, brokerage services or other providers from whom you receive fees? 0% • I certify that the responses above are true and correct. Joseph Bogdahn Chief Compliance Officer