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.
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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.
