As industry players take predictable sides, will 401k plan sponsors benefit from seeing how the sausage is made?
Tag "12b-1"
The Official press release provided by the SEC asking for public comment.
Why some target date investors should be furious, why expecting 401k plan sponsors to comment on a change they donât understand would be asking far too much and just see what he says about 12b-1 fees.
These three issues linger like a ticking time bomb. Theyâre out there. Theyâre going to go off at some point. We just donât know when. Plan fiduciaries need to get ready for them.
These next three months may prove a watershed for 401k plan sponsors as new rules will dramatically alter how 401k plan sponsors manage their companiesâ retirement plans.
Should indirect fees matter? Academics may argue, but regulators will have the final say. Unfortunately, different definitions of fees only confound the ERISA fiduciary.
Too many accept the definition of âfeesâ without deliberation. Yet, even by looking solely at the fees associated with investment choice, the fiduciary can land in a state of confusion. This only increases liability. How can we fix this?
Why wait until now to bring up the three-month old blog? The bigger question, however, remains, âHow should a 401k fiduciary analyze mutual fund fees?â
Sometimes something that appears too good to be true really is. Professionals have long known the potential pitfalls of ETFs. Only recently have these facts become more widely known. Donât be surprised if, like a tube of toothpaste, squeezing one problem away only creates a bulge in a different problem.
SEC’s Mary Shapiro: âWhen it comes to 12b-1 fees, there is a need for more fundamental change than mere disclosure reforms and a name change.â FiduciaryNewsâ exploration of this hot potato reveals a surprising misconception.