Participants Not Confident in Investing Abilities

Seventy-three percent of plan participants surveyed said they are not overly confident in their investing abilities, according to The Scarborough Group, provider of investment advice and allocation management for 401(k) plan participants.

In a press release, The Scarborough Group said the survey also found that 72% of participants would prefer to use personal management for their 401(k) plan, meaning an adviser provides investment advice and also manages their account assets. On the other hand, only 20% of participants said they would prefer an internet-based form of advice, and only 4% of participants said they would trust advice generated from an internet-based application, down from 5% in 2001.

 

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The survey of 664 plan participants across the US also asked about participants’ confidence in Social Security benefits. Seventy-five percent of those surveyed said they are “somewhat” or “very” concerned about Social Security’s viability for the long-term. Only 8% said they are “somewhat” unconcerned or “not at all” concerned, according to the press release. J. Michael Scarborough, president of The Scarborough Group, pointed out in the press release that 57% of those surveyed were age 51 or older.

 

 

The Scarborough Group’s Web site is www.401kadvice.com.

 

 

State Street Enhances Investment Compliance Suite

State Street Corporation has announced enhancements to its suite of compliance offerings that was created in response to Securities and Exchange Commission (SEC) Rule 38a-1 which became effective in October 2004.

State Street has added to its compliance program Compliance38 Online, a Web-based service which makes chief compliance officer (COO) program documents available to customers through my.statestreet.com, according to the announcement. Compliance38 Online enables customers to access State Street compliance documents housed in a common repository.

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State Street also enhanced its post-trade compliance service capabilities, delivered through my.statestreet.com, for fund managers, multi-managers, management companies and pension funds worldwide, the announcement said. As part of the risk management process, State Street has combined its compliance security reference data and online breach reporting capabilities with the rules coverage and capabilities of Charles River Development, a provider of investment compliance technology.

The enhancement gives State Street the ability to design customer-defined, specific mandates and regulatory guideline tests. Clients will be able to monitor investments objectively and ensure adherence to investment regulations, Jay Hooley, executive vice president and global head of investment services for State Street, said in the announcement.

More information can be found at www.statestreet.com.

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