SEC also wants to see how administrators counsel participants on investing, as well as explanations for any gifts administrators may have gotten from companies selling investments. (Photo: Diego M. Radzinschi/ALM)
Companies that administer teacher and government worker retirement plans are on the receiving end of letters from the SEC about an investigation that will look into, among other things, high-cost investment products.
That's according to a report in The Wall Street Journal, which cites an SEC document saying that the agency "is conducting an investigation" to see whether "violations of the federal securities laws have occurred."
At issue is not only the prevalence of high-ticket products but also how administrators police themselves in the event of conflicts of interest, as well as "documents pertaining to any compensation the administrators have received since Jan. 1, 2017 for referring investors to specific investment options or companies," according to the report.
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Marlene Satter
Marlene Y. Satter has worked in and written about the financial industry for decades.
