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Article: Shadowy marketing.(NEWS)
- Article from:
- Pensions & Investments
- Article date:
- October 5, 2009
CopyrightCOPYRIGHT 2009 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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As public retirement systems, state governments and the Securities and Exchange Commission try to clean up third-party marketing arrangements at public employee pension funds, more attention should be paid to so-called shadow marketers, or alternative marketing, to crack down on the practice.
While pay-to-play and third-party sales tend to be directed to defined benefit plans, shadow marketing tends to target public defined contribution plans, especially 457 deferred compensation plans, and involves the use of non-professionals in the selling of investment products.
Nationwide Financial Services Inc., for example, pays endorsement fees to state and ...