401(k) service companies under additional scrutinyNews added by Benefits Pro on May 1, 2012
BenefitsPro

Benefits Pro

Joined: September 07, 2011

My Company

By Andy Stonehouse

As part of the upcoming round of fee disclosures, there's also set to be increased federal scrutiny on service providers - and even more legal action as participants come face to face with the real costs of their 401(k) investments.

According to a Reuters article, an uptick in Deparment of Labor examinations of brokerage firms, third-party administrators and RIAs is part and parcel of the new fee disclosure regulations - a move which has attorneys representing the service industry concerned.

Legal action over conflicts in compensation and costs have already occured: last week, firm Morgan Keegan agreed to pay $634,000 to 10 retirement plans after DOL investigations discovered the firm took kickbacks for hedge-fund investment sales.

Class-action suits over fees will turn up the heat on service providers, and more is expected to come as the deadline for fee disclosures comes closer.

Originally published on BenefitsPro.com
The views expressed here are those of the author and not necessarily those of ProducersWEB.
Reprinting or reposting this article without prior consent of Producersweb.com is strictly prohibited.
If you have questions, please visit our terms and conditions
Post Press Release