Compliance

American Funds and California AG End Revenue Sharing Litigation

California’s Attorney General and Capital Research and Management Company, the investment adviser to the American Funds family of mutual funds, have entered into an agreement to withdraw their three-year-old lawsuits against each other involving disclosure of broker revenue sharing agreements.

IMHO: Utility “Bill″

While it’s been a relatively mild winter here (and it’s not over yet), it’s been cold enough—and our house old enough—that opening the various utility bills has been akin to a monthly exercise in economic roulette.

SEC Settles Charges Over Broker Gifts With Fidelity

The Securities and Exchange Commission (SEC) announced that Fidelity Investments agreed to pay an $8 million penalty in connection with charges 13 current or former employees improperly took more than $1.6 million in gifts by brokers.

SEC Proposes Easing of ETF Regulations

The Securities and Exchange Commission (SEC) has proposed two new rules under the Investment Company Act to allow exchange-traded funds (ETFs) to operate without first getting SEC exemptive orders.

IMHO: The Not-So-Fine Print

If you watch commercial TV (that is to say, TV with commercials), you’ve no doubt been struck by the proliferation of ads for various prescription medicines.

Insurance Providers Charged in 412(i) Scheme

A new lawsuit has accused a group of insurance companies, consultants, and lawyers of conspiring to sell illegal tax shelters to employers for 412(i) plans by misrepresenting the potential risks of the pension funding arrangements.

Supreme Court Lets Rollover Exemption Decision Stand

The U.S. Supreme Court declined to review a case in which an appellate court determined a profit-sharing plan was not subject to spousal consent requirements of the Employee Retirement Income Security Act (ERISA) simply because it was made up of assets from other plans containing qualified joint&survivor annuity requirements.

Excessive Fee Suit Against Fidelity Survives Initial Challenge

A federal judge in Missouri has determined that the fiduciary breach lawsuit over excessive fees and revenue sharing practices in ABB’s 401(k) plan, filed by the St. Louis-based law firm of Schlichter Bogard&Denton on behalf of the plan’s participants, can move forward.

Breach Suit against Broker Too Late

A judge has dismissed a profit-sharing plan participant’s fiduciary breach suit against the plan’s broker because it was filed after the three-year statute of limitations required under the Employee Retirement Income Security Act (ERISA).