Lawsuits targeting excessive fees in retirement plans continue to roll in, and the latest have been separate class-action lawsuits brought against a number of universities, including Yale, Duke, and NYU, on behalf of employees in their defined contribution plans, according to ThinkAdvisor. “I think this may be a whole new chapter in 401(k) and 403(b) fee litigation,” Carol Buckmann, partner at Cohen and Buckmann PC, told the publication. Also, Finra has proposed raising the annual gift limit that a registered rep can spend per year on a person from $100 to $175, InvestmentNews reports. In addition, the regulator has proposed other changes to its gifts, gratuities and non-cash compensation rules. Comments are due by Sept. 23. Read more below.
By Emily Zulz Source: ThinkAdvisor
A St. Louis-based law firm has now brought lawsuits against eight major universities on claims that their retirement plans charged employees excessive fees. On Aug. 9, Schlichter, Bogard & Denton filed separate class-action lawsuits against Massachusetts Institute of Technology, New York University and Yale University on behalf of more than 60,000 employees in their defined contribution retirement plans. Two days later, it filed separate class-action lawsuits against four more universities: Duke, Johns Hopkins, the University of Pennsylvania and Vanderbilt. On Monday, the same firm brought another case against Emory University.
By Liz Skinner Source: InvestmentNews
Finra proposed increasing to $175 from $100 the amount that a registered representative can spend on an individual per year, and is seeking other updates to its gifts, gratuities and non-cash compensation rules. “The gift rule is meant to prohibit conflicts of interest so you can’t influence a firm to send business in your direction,” said Todd Cipperman, founding principal at Cipperman Compliance Services.