{"id":2884,"date":"2019-02-27T17:09:21","date_gmt":"2019-02-27T22:09:21","guid":{"rendered":"https:\/\/www.rixtrema.com\/blog\/?p=2884"},"modified":"2021-07-02T10:39:37","modified_gmt":"2021-07-02T15:39:37","slug":"fidelity-is-facing-more-litigation-from-plan-participants","status":"publish","type":"post","link":"https:\/\/rixtrema.com\/blog\/fidelity-is-facing-more-litigation-from-plan-participants\/","title":{"rendered":"Fidelity is facing more litigation from plan participants"},"content":{"rendered":"

While we\u2019ve been talking about new lawsuits coming out every day, just yesterday InvestmentNews.com reported<\/a> <\/span>that Fidelity is facing more litigation from plan participants, this time for the T-Mobile 401(k) plan. The plaintiff is alleging that Fidelity was charging \u201csecret\u201d fees to participants on their mutual funds. For example, if the 12b-1 or revenue sharing fees on the funds were below a certain threshold, Fidelity would take an additional payment from the fund to make up for this lost compensation. <\/span><\/p>\n

One of the big problems of this is that these payments (indirect compensation) were not being properly reported or disclosed. While Fidelity claims that they were complying with all reporting requirements, it is yet to be seen how the court will decide. <\/span><\/p>\n

With more lawsuits comes more scrutiny for big fund companies and recordkeepers. Every week we can read new articles on the endless lawsuits around 401(k) plans<\/a><\/span>. The effect that these lawsuits seem to be having may lead to a better world for plan participants since \u201csecret\u201d payments and high-cost funds are finally being exposed. However, some claim that this could also stifle innovation because plan fiduciaries are scared of being sued. We will see in the coming year whether this will be true or not. Stay tuned to our blog for more updates.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

While we\u2019ve been talking about new lawsuits coming out every day, just yesterday InvestmentNews.com reported that Fidelity is facing more litigation from plan participants, this time for the T-Mobile 401(k) plan. The plaintiff is alleging that Fidelity was charging \u201csecret\u201d fees to participants on their mutual funds. For example, if the 12b-1 or revenue sharing… <\/p>\n

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Read More<\/a><\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[216,224],"tags":[],"class_list":["post-2884","post","type-post","status-publish","format-standard","hentry","category-article-review","category-plan-participants"],"jetpack_featured_media_url":"","yoast_head":"\nFidelity is facing more litigation from plan participants<\/title>\n<link rel=\"canonical\" href=\"https:\/\/rixtrema.com\/blog\/fidelity-is-facing-more-litigation-from-plan-participants\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Fidelity is facing more litigation from plan participants\" \/>\n<meta property=\"og:description\" content=\"While we\u2019ve been talking about new lawsuits coming out every day, just yesterday InvestmentNews.com reported that Fidelity is facing more litigation from plan participants, this time for the T-Mobile 401(k) plan. The plaintiff is alleging that Fidelity was charging \u201csecret\u201d fees to participants on their mutual funds. For example, if the 12b-1 or revenue sharing... Read More\" \/>\n<meta property=\"og:url\" content=\"https:\/\/rixtrema.com\/blog\/fidelity-is-facing-more-litigation-from-plan-participants\/\" \/>\n<meta property=\"og:site_name\" content=\"RiXtrema.com\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/LarkspurRiXtrema\/\" \/>\n<meta property=\"article:published_time\" content=\"2019-02-27T22:09:21+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-07-02T15:39:37+00:00\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@RiXtrema\" \/>\n<meta name=\"twitter:site\" content=\"@RiXtrema\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\">\n\t<meta name=\"twitter:data1\" content=\"1 minute\">\n<!-- \/ Yoast SEO Premium plugin. -->","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/rixtrema.com\/blog\/wp-json\/wp\/v2\/posts\/2884","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/rixtrema.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/rixtrema.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/rixtrema.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/rixtrema.com\/blog\/wp-json\/wp\/v2\/comments?post=2884"}],"version-history":[{"count":3,"href":"https:\/\/rixtrema.com\/blog\/wp-json\/wp\/v2\/posts\/2884\/revisions"}],"predecessor-version":[{"id":8684,"href":"https:\/\/rixtrema.com\/blog\/wp-json\/wp\/v2\/posts\/2884\/revisions\/8684"}],"wp:attachment":[{"href":"https:\/\/rixtrema.com\/blog\/wp-json\/wp\/v2\/media?parent=2884"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/rixtrema.com\/blog\/wp-json\/wp\/v2\/categories?post=2884"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/rixtrema.com\/blog\/wp-json\/wp\/v2\/tags?post=2884"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}