Managed account providers may be leaving plan sponsors vulnerable to fiduciary claims and often disclose too little about their fees and performance to help participants, the Government Accountability Office said in a report released today.
401(k) plan sponsors have increasingly offered their participants managed accounts. Such accounts provide participants with a team of investment professionals who actively manage their retirement savings account.
The GAO reviewed eight managed account providers that represented most of the industry in 2013. It found they all varied in how they structured managed accounts, including the services they offered and their reported fiduciary roles. One of the eight providers defined their fiduciary role in a way that was different from the rest, according to the GAO's findings.
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
