Tuesday, July 20, 2010

Federal court restricts financial planners from setting up high fee "retail" 401(k) plans

AOL this morning (July 20) gave a reference to a Daily Finance story about a federal court opinion in California on Tibble v. Edison International (CV 07-5359), sharply certainly the capacity of investment companies from steering 401(k) participants into “retail class” investment funds rather than “institutional class” which offer much lower fees but which in the past have often demanded higher minimums. The link is here.

Employers should be sensitive to this decision in helping set up 401(k) plans.

I found a PDF for the complaint here (at Spencer Fane).

No comments: