"It has been suggested that RIAs often base their choice of a fund's share class on whether the class offers a financial incentives such as 12b-1 fees or revenue sharing to the RIA. From the ERISA standpoint, the issue would be twofold. First, whether the plan sponsor simply blindly accepted their service provider's recommendations without performing the independent and thorough investigation required by ERISA. Second, whether the plan sponsor chose the investment options for the plan based on the fact that the fund offered a revenue sharing plan to help plans cover all or a percentage of a plan's administrative costs."  MORE >>