Compliance

Deere and Fidelity Fee Lawsuit Thrown Out

Plan sponsors and providers won a battle in the ongoing legal war over retirement plan fees last week when a federal judge in Wisconsin threw out suit brought against Deere&Co. and two Fidelity Investments units.

Pension Fund Files Complaint Against Adviser

The Delray Beach, Florida, police and fire pension board voted Wednesday to sue its former financial consultant if no settlement can be reached regarding trading fees the broker gained from the fund.

Bad Move?

Sooner or later, we all make what appears to be, in hindsight anyway, a bad career move.

EBSA to Hold Public Hearing About Advice Provision

The U.S. Department of Labor’s Employee Benefits Security Administration (EBSA) will hold a public hearing on July 31 to assess the feasibility of using computer models to provide advice to participants with individual retirement accounts (IRAs) and similar plans.

IMHO: Caveat Emptor

A couple of weeks ago, my better half told me that she thought it was time that we traded in two of our aging vehicles – one a car that is too small for our family, the other a van that now seems too big for all but cross-country trips – for something in the middle.

Second PBHG Fair Fund Distribution Announced

Yesterday, the Securities and Exchange Commission (SEC) announced the distribution of $73 million to a second group of investors harmed by fraudulent market timing in the PBHG Funds between June 1998 and December 2001.

IMHO: Moving Targets

In nearly 30 years working with employer-sponsored retirement plans, I am hard-pressed to call to mind a product innovation that has been adopted with as much vigor as the current generation of target-date funds.

Plan Sponsors Want More Commission Disclosure

More than two-thirds of plan sponsors say they want the Securities and Exchange Commission (SEC) to draw clearer lines for disclosure requirements for commissions paid to brokers for research and trade execution.

Citigroup Settles Inadequate Supervision Charges with NASD

For failing to properly supervise brokers delivering misleading information to plan participants during retirement seminars, Citigroup Global Markets, Inc. will settle with the NASD for more than $15 million and brokers involved will pay between $30,000 and $125,000.

12b-1 Fees to be Topic of SEC Roundtable

The Securities and Exchange Commission (SEC) will host a roundtable discussion about Rule 12b-1 under the Investment Company Act of 1940, which allows mutual funds to use fund assets to finance the distribution of their shares.

SEC Asks Court for Stay on Overturned Merrill Rule

Although the ruling in Financial Planning Association v. SEC was set to go into effect today, the Securities and Exchange Commission (SEC) has filed a stay, asking for more time to transition fee-based brokerage accounts into other account types.

Bank of America Sued for Race Discrimination

Five black current and former employees of Bank of America Corp. filed a discrimination suit Thursday against the bank, alleging that it assigns its black employees to primarily minority neighborhoods and low net-worth accounts.