• 401(k) Sponsor Duties and Mutual Fund Wrongdoing
  • January 14, 2005 | Author: Robert C. Christenson
  • Law Firm: Fisher & Phillips LLP - Atlanta Office
  • A number of employers have asked what steps should be taken by 401(k) plan sponsors to deal with recent news that certain mutual fund providers allowed "late trades" or "market timing" in some of their funds. According to a recent study by a Stanford University professor, late trading added approximately $400 million in annual costs to these funds while market timing transactions cost mutual fund shareholders an additional $5 billion annually.