Mutual Fund Software

[Guest tintree73]

Is there a fiduciary violation if a plan buys software from a mutual fund investment advisor that allows for pension plan enrollment? What if the plan gets the software at a discounted price?

[g8r]

That's a loaded question and the answer, of course, is it depends.

Without knowing the capcity of the advisor and whether there is self-dealing, at the very least the fees paid by a plan must be reasonable. That means all fees regardless of whether they are buried in investment fees or software.

[Guest tintree73]

I believe it will just be the MF funding - no advising will be going on. I was looking at 406 and 4975, and DOL AO re 12b-1 fees, etc. and thought there may be a problem. Thank you so much for getting back to me on this.