• DOL Provided Guidance on ERISA Fiduciary Duties in Response to Mutual Fund Abuses
  • March 19, 2004 | Authors: Donald J. Myers; Michael B. Richman
  • Law Firm: Reed Smith LLP - Washington Office
  • Since the announcements of state and federal investigations into mutual fund late-trading and market-timing abuses last summer, the fiduciaries of 401(k) plans, which typically use mutual funds as participant-directed investment options, have been faced with the issue of what steps to take in response. Many plan sponsors have been reviewing their mutual fund holdings, and some have dropped funds that have been prominently named in the investigations. Others have looked to the government for guidance.