December 07, 2009
--- Advisers could be looking at some changes on target-date
funds next year—and maybe a change in certain mutual fund fees. ---
Speaking at the Consumer Federation of America 21st Annual Financial Services Conference, Mary Shapiro, chairman of the Securities and Exchange Commission (SEC), told attendees that she had requested that SEC staff “early next year, present the Commission its recommendations on target-date funds.”
“The ‘set it and forget it’ slogans of these funds resulted in shocked investors who were on the verge of retirement. It was a wake-up call for investors, employers and regulators, alike,” she said, noting that the SEC had held a joint hearing with the Department of Labor on the subject earlier this year.
“Since that hearing, our staff has been focused on the marketing materials related to these funds and the use of target dates in fund names. I believe this an area in need of reform for the benefit of America's retirement investors, and I look forward to completing the work we have started,” Shapiro said.