Los Angeles partner Fred Reish was quoted in a RIA Biz article titled, “How 12(b)-1 fees and revenue sharing may be the real victims of Monday’s ‘narrow’ Supreme Court ruling.”
This article discusses the ramifications of a unanimous decision handed down by the U.S. Supreme Court that could impact mutual fund selection by delivering a blow to two mainstays of advisory cash flow: 12(b)-1 fees and revenue sharing.
Fred said that plan sponsors will be the most “rattled” by the decision. “It creates a greater opportunity for participants to sue plan sponsors for expensive investments. I mean that participants will be able to sue for plans that were selected for inclusion in the plan more than six years ago but haven’t been removed from the plan within the last six years.”