An article appeared yesterday on CFO.com entitled “New 401(k) Obligations Heaped on CFOs” and it carried a tagline stating “New disclosure rules abound, but pay close attention or you could be sued by plan participants.”
Topic Archive: Fee Disclosure
In the last few days, there have been several new media reports of professional wrongdoing. One describes a CPA suspended for preparing a false tax return. Another alleges a TPA firm provided conflicted advice when it referred clients to a CPA firm in which it held a stake. Hopefully the allegations will turn out to be false, but these situations reinforce the importance of quality, unconflicted advice.
This was the subject of quite a lengthy debate in the 401(k) group on LinkedIn last week. By the end of the day on Friday, there were more than 40 comments. While the discussion took a few twists and turns, the primary debate was whether it is ever appropriate for a plan to pay a higher fee for a service if there is a lower-cost option available.