Legislative and Judicial Actions
Complex Ruling Sees Nvidia ERISA Lawsuit Dismissed, For Now
The dismissal order in the case includes several points of success for the plaintiffs, and while the suit has been tossed out due to a lack of standing, the court has left room for them to file an amended complaint.
Revenue Sharing Disclosure Failures Result in SEC Action
A recent cease-and-desist order filed by the Securities and Exchange Commission underscores the fact that revenue sharing among financial advisers and ‘parties in interest’ is not necessarily an inherent problem—but a failure to disclose the relationship and the potential for conflict is.
Juniper Networks Is Latest ERISA Lawsuit Target
The claims included in the complaint, which in some respects directly contradict arguments made by other plaintiffs in related fiduciary breach cases, underscore just how many potential avenues for scrutiny plan sponsors face.
Lawsuit Says Retirement Plan Fiduciaries Failed to Monitor and Limit Revenue Sharing
The complaint against Wesco Distribution also alleges that the defendants chose higher-cost share classes for investments.
Lawsuit Against MEP Takes Issue With Share Classes, Revenue Sharing
Fiduciaries of the multiple employer plan of professional employer organization (PEO) Nextep, Inc. are being sued over excessive investment and recordkeeping fees.
Analysis Shows Participant Fees Higher in Plans With Revenue Sharing
Researach also found that mutual funds that pay revenue sharing are more likely to be added to plan investment menus and are less likely to be deleted from them
Voya Settles With SEC for $23M on Charges of Misleading Advice
The advice concerned mutual funds, illiquid alternative investments and cash sweep vehicles.
Salesforce Ruling Offers Key Lessons About Revenue Sharing, Fee Litigation
Salesforce Defeats ERISA Excessive Fee Litigation
A district court in California has proven to be skeptical of claims suggesting that active management funds are categorically imprudent retirement plan investments; the ruling also defends the use of revenue sharing.
Latest ERISA Class Action Suit Echoes Many Others
The proposed class action lawsuit against TriNet HR follows the same template as numerous others filed by the law firm Capozzi Adler.
BTG International Agrees to Pay $560,000 to Settle ERISA Suit
The suit alleged excessive fees were paid to the recordkeeper of the company's 401(k) plan through undisclosed revenue sharing.
SEC Complaint Dissects Fee-Based Firm’s Revenue Sharing Strategy
The Securities and Exchange Commission takes issue with revenue sharing tied to a preferred broker’s “transaction fee” program, underscoring how fee-based advisers are not immune from allegations of conflicts of interest.
Revenue Sharing, Soft Fees Questioned in Latest ERISA Suit
Beyond the issue of excessive compensation, the lawsuit questions the collection of “float interest” and asks whether BTG International permitted a provider to create a “captive market for 401(k) rollovers.”
Advisers Can Help Plan Sponsors With Their Focus on Fees
In the majority of cases, plan sponsors that participated in Callan’s 2019 Defined Contribution (DC) Trends Survey said their plan consultant/adviser conducted fee benchmarking, and in 2019, sponsors will be looking to switch to lower-fee share classes and to more institutional vehicles.
Empower ERISA Revenue-Sharing Lawsuit Voluntarily Dismissed
The court officially ended the case by approving a dismissal motion jointly filed by the parties.
After Grace Period, SEC Share Class Disclosure Investigations Begin
Attorneys warn the “other shoe has dropped” in the SEC’s special Share Class Disclosure Initiative—and RIAs that did not self-report potential 12b-1 fee disclosure violations are now being investigated.
Attorneys Report Settlement in Duke University 403(b) Plan Cases
One case focused on excessive fees for recordkeeping, administrative, and investment services, and the other focused on revenue sharing.
Second Lawsuit Over Duke University 403(b) Plan Filed
The new lawsuit alleges the university engaged in prohibited transactions when it used revenue sharing from plan investments to pay for HR staff salaries and fringe benefits.