With more DC assets going into stable value funds, the question is whether anyone can really determine what the fees are and whether these types of investments can comply with the new DOL fee disclosure rules. For all but the larger plans, it can be hard to determine what the fees are; and without competitive bidding, that process may not be as transparent as it is for other investments.
Advisors who are on top of the issues surrounding stable value have an opportunity to help current clients and initiate interesting conversations with prospects. Even if stable value funds skirt the fee disclosure rules, they may not avoid class action suits from a hungry and active plaintiffs’ bar. Read more here.
