|
|
Article: ADVICE: TO GIVE OR NOT TO GIVE.(giving investment advice to employees regarding their 401K investments)
- Article from:
- Pensions & Investments
- Article date:
- October 4, 1999
- Author:
CopyrightCOPYRIGHT 1999 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)
|
Executives of companies sponsoring 401(k) plans seem to be caught in no-man's land. They may eventually be sued by plan participants if they do not give the participants investment advice. But they also may be sued if they provide investment advice, and the employees have unfavorable outcomes.
For now, the employers seem to believe there is greater danger in giving advice than in not giving it, apparently a reason third-party advice firms such as Financial Engines, 401k Forum and Investment Technologies have not yet broken through to wide acceptance. Each of these companies reportedly has fewer than a dozen clients after two years of marketing.
Plan ...