Among the many issues facing DC plans, Groom Law Group attorney Steve Saxon cites alternative and proprietary funds as possibly being on the menu for federal regulators. Though much of the DOL’s attention has been on the redefinition of fiduciary and lifetime income illustrations, Saxon believes that the interest in alternative funds, which include higher, more complex fee structures, could draw the attention of regulators. In addition, the question of whether record keepers are favoring their proprietary funds, especially poor performers, could come under scrutiny.
Speaking the 2013 SPARK Forum in Palm Beach, Saxon also warned that DOL investigations are likely to be tougher and longer as the enforcement staff gets more knowledgeable.
