ICI says 401(k) legislation would set a ‘dangerous precedent’

The Investment Company Institute blistered a House bill under consideration that would require detailed 401(k) plan fee disclosures and require plan administrators to offer a least one low-cost index fund to plan participants.
JUN 25, 2009
By  Bloomberg
The Investment Company Institute blistered a House bill under consideration that would require detailed 401(k) plan fee disclosures and require plan administrators to offer a least one low-cost index fund to plan participants. “The bill fails to define clearly the vital disclosures investors need, while layering on unnecessary and potentially inaccurate information that will only confuse employers and workers,” Paul Schott Stevens, ICI’s president and chief executive, said in a statement. “The proposed legislation sets a dangerous precedent by giving Congress the job of selecting investment options for plans.” The ICI sent a letter detailing its concerns to members of the House Education and Labor Committee, which voted 29 to 17 yesterday to pass the 401(k) Fair Disclosure and Pension Security Act of 2009. The ICI stressed, however, that it supports efforts to improve the 401(k) system, the statement said. However, a market participant did not agree. “The bill is moving in the right direction for consistency and more uniformity [of disclosure],”said Pam Hess, director of retirement research at Hewitt Associates LLC, a global human-resource-consulting firm based in Lincolnshire, Ill. “It will lower costs for participants. The more knowledge that plan sponsors have helps them make better decisions as they shop around. The result will be better plans for participants.”

Latest News

The 2025 InvestmentNews Awards Excellence Awardees revealed
The 2025 InvestmentNews Awards Excellence Awardees revealed

From outstanding individuals to innovative organizations, find out who made the final shortlist for top honors at the IN awards, now in its second year.

Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty
Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty

Cresset's Susie Cranston is expecting an economic recession, but says her $65 billion RIA sees "great opportunity" to keep investing in a down market.

Edward Jones joins the crowd to sell more alternative investments
Edward Jones joins the crowd to sell more alternative investments

“There’s a big pull to alternative investments right now because of volatility of the stock market,” Kevin Gannon, CEO of Robert A. Stanger & Co., said.

Record RIA M&A activity marks strong start to 2025
Record RIA M&A activity marks strong start to 2025

Sellers shift focus: It's not about succession anymore.

IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients
IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients

Platform being adopted by independent-minded advisors who see insurance as a core pillar of their business.

SPONSORED Compliance in real time: Technology's expanding role in RIA oversight

RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.

SPONSORED Advisory firms confront crossroads amid historic wealth transfer

As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.