Matrix Trust Co. is facing a class-action lawsuit over 12b-1 fees and float and non-float interest from 401(k) plans, which the firm allegedly failed to report to clients.Minnesota-based MBA Engineering brought the case July 21 against the Denver, Colo.-based Broadridge affiliate, seeking class certification for as many as 60,000 Matrix clients.MBA alleges that Matrix, the plan custodian, ran afoul of the Employee Retirement Income Security Act by not disclosing the fate of 12b-1fees charged by many mutual funds and potential income from float and non-float plan assets.At least 100 Matrix retirement plan sponsor clients have not received the fee disclosures required by the Department of Labor, known as 408(b)(2) notices, the plaintiffs wrote.“Plaintiffs were falsely told by third parties that 90% of the 12b-1 fees defendants would receive would be paid to the plaintiffs. However, records now show that did not happen,” the complaint read. “Accordingly, defendants have, without disclosure, either kept the 12b-1 fees entirely or paid portions of them to parties in interest. Discovery will reveal what defendants did with the 12b-1 fees, but either case constitutes a prohibited transaction.”
The post Matrix Trust Co. sued over alleged lack of 401(k) fee disclosure appeared first on InvestmentNews.
We're here to help. Send us an email or call us at +1 (585) 329-9661. Please feel free to contact our experts.
A donation will be made by Adviser First Partners to a Veterans organization on behalf of all financial professionals and firms that register each month
Contact Us© 2024 Adviser First Partners. All Rights Reserved.
Web Design by eLink Design, Inc., a Kentucky Web Design company