Can a Broker or Advisor Objectively Run Their Own RFP?

In many benefit and retirement plan evaluations, the existing broker or advisor plays a central role in managing the RFP process. This arrangement is common throughout the industry.

Advisors often help gather information, coordinate vendors, develop questionnaires, organize responses, and guide sponsor discussions. Their experience and market knowledge can be valuable. However, this structure raises an important question: Can a provider objectively manage an evaluation in which they are also being evaluated?

Why Advisors Often Manage the Process

In many organizations, the broker or advisor is the most knowledgeable external resource available. Sponsors rely on them because they understand the market, know the vendor landscape, have experience with implementations, and understand plan structures. This expertise can make the process more efficient. But efficiency and objectivity are not always the same thing.

Where Tension Can Develop

The issue is not necessarily misconduct or bad intent. The issue is structural. When a provider helps manage the process evaluating their own relationship, several challenges can emerge:

Again, this does not mean the process is improper. But it does create an inherent tension.

• Evaluation criteria may favor existing structures
• Vendor comparisons may be limited
• Compensation differences may not be fully transparent
• Certain providers may receive more favorable positioning

Why Independence Matters

Independent evaluation helps create greater confidence that providers are compared consistently, compensation is reviewed objectively, alternatives are fully considered, and recommendations are not influenced by self-interest.

This is particularly important from a fiduciary perspective. The appearance of objectivity can matter almost as much as objectivity itself.

The Goal Is Not Distrust

This discussion should not be interpreted as criticism of brokers or advisors. Many provide valuable expertise and strong service. The issue is not whether advisors add value. The issue is whether the evaluation process itself remains sufficiently independent and defensible.

The Bottom Line

A broker or advisor may be highly capable of managing an RFP process. But when they are also part of the evaluation, sponsors should carefully consider whether additional independence would strengthen the process.

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