Kate Informed
Kate Objective

The opinions and views reflected in the articles posted do not necessarily reflect the views of Hager Strategic. Links to these news features are not part of www.hagerstrategic.com . The owners of these external sites own the intellectual property rights to the material on the linked sites. While Hager Strategic cannot certify the accuracy of the material published on the linked site, we make every effort to post links only to websites and news sources we find reliable and trustworthy.

NEWS - Fidelity Faces Lawsuit over Revenue Sharing

January 10, 2014 – Another participant in Fidelity Investments’ own retirement plan has brought a lawsuit saying participants paid excessive fees.

The latest lawsuit focuses on Fidelity’s treatment of revenue sharing payments, saying “Defendants caused the Plan to forego tens of millions of dollars in revenue-sharing rebates that Fidelity kept for itself.” According to the complaint, in 2012, the Fidelity plan had approximately 71% of its investment assets in actively-managed Fidelity mutual funds. All the funds are managed by an affiliate of the recordkeeper. Instead of negotiating a revenue-sharing recapture arrangement favorable towards participants, plan fiduciaries arranged with Fidelity Operations and Fidelity Management to keep all revenue-sharing for Fidelity, the complaint contends, saying this arrangement cost the Fidelity Plan and its participants approximately $15 million a year for the years 2008-2013.

Click on the external link below to review the entire article:

http://www.planadviser.com/Fidelity_Faces_Lawsuit_over_Revenue-Sharing.aspx