What plan sponsors must know about 401 (k) revenue-sharing deals

Swisher, Pete
September 2004
Employee Benefit News;9/15/2004, Vol. 18 Issue 12, p64
This article reports that the investigation of the U.S. Securities and Exchange Commission's into the 401(k) revenue-sharing practices of several major fund families has put the focus on under-the-table payments. Mutual funds pay money to vendors who sell the fund families' product, but plan sponsors rarely know these payments exist. When they do, they usually are unaware of the amounts, who receives the payments or the potential conflicts of interest created, all of which are items that a prudent fiduciary is expected to know about his service providers. INSET: A Revenue-Sharing Checklist for Plan Sponsors.


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