Both sides of the fiduciary debate suggest their view reduces retirement investor costs. They can’t both be right. Luckily, the marketplace offers a real testing ground, leaving only one question: Who does the DOL protect – the industry or the investor?
Conflicts of Interest
Unfortunately, 401k plan sponsors cannot serve two masters – the existing employees and the former employees. Here’s why.
The result of a new J.D. Power & Associates survey poses a double jeopardy for 401k plan sponsors. In the end, though, there’s only one correct answer to the question.
Fee disclosures will become the trending topic among 401k plan sponsors and fiduciaries. It will be tempting to overweight this parameter. But if your plan has an index fund or you’ve ever contemplated using index funds, this book contains one piece of data you absolutely must have.
On the one hand SEC Chairman Shapiro wants to “put the client first.” On the other hand, she delays addressing a conflict of interest research has shown to hurt investors. Is there a method to this madness?
This one paper almost accidentally seals the deal for the fiduciary standard, exposes the conflict-of-interest created by 12b-1 fees and, dare we say, touches the forbidden third rail of all investment research…
Was a major financial professional organization covering up some important data in their comment letter to the SEC? Or is the industry’s 401k defense of 12b-1 fees much ado about nothing?
Fiduciary News interviews an industry spokesman, who, on the condition of anonymity, shares a shocking point in the SEC 12b-1 proposal that has, to date, failed to receive the media coverage one might expect.
As industry players take predictable sides, will 401k plan sponsors benefit from seeing how the sausage is made?
The Official press release provided by the SEC asking for public comment.
