Fidelity under probe for hidden fees

[Helen]

Fidelity Facing Labor Department Probe Over Hidden Fees: Report | Fortune

Fidelity is under probe by the labor department for charging hidden fees.

The a Wall Street Journal has a more in depth article but requires a subscription.

 

[Spock]

The way I read it, Fidelity charges the 3rd party 401Ks 0.15%. Its up to the 3rd party 401K to tell the end customer if the 401K is passing on the fee or not.

 

[COcheesehead]

So the article says:
"Vincent Loporchio, senior vice president for corporate communications at Fidelity, said in an email to Fortune that the company “fully complies with all disclosure requirements in connection with the fees that it charges” and that all fees were disclosed to 20,000 401(k) plans. Investors buying shares of those funds would have to be told about the fee by the funds themselves." The fees can also be paid by the fund which makes the point moot.

 

[MichaelB]

So the article says:
"Vincent Loporchio, senior vice president for corporate communications at Fidelity, said in an email to Fortune that the company “fully complies with all disclosure requirements in connection with the fees that it charges” and that all fees were disclosed to 20,000 401(k) plans. Investors buying shares of those funds would have to be told about the fee by the funds themselves." The fees can also be paid by the fund which makes the point moot.

It’s probably right there in plain daylight. Page 172, section F, paragraph 13, sub-section C, line 84.

“The party of the first part blah blah blah blah, reserves the right blah blah blah blah, additional fees being charged and not disclosed anywhere else blah blah blah blah all you have to do is read this blah blah blah blah if you’ve read this far you’re either a lawyer or a robot blah blah blah blah“.

 

[flintnational]

Abigail Johnson NW $17B
Jack Bogle NW $80M

Those extra zeros have to come from somewhere.

ETA: I still have an old small 401K at Fido. I thought I was getting the near zero fees. Who knows? If the 15bp are being charged on this account, it would be about $1,200 over the last five years. Maybe AJ will send me a check.

 

[COcheesehead]

It’s probably right there in plain daylight. Page 172, section F, paragraph 13, sub-section C, line 84.

“The party of the first part blah blah blah blah, reserves the right blah blah blah blah, additional fees being charged and not disclosed anywhere else blah blah blah blah all you have to do is read this blah blah blah blah if you’ve read this far you’re either a lawyer or a robot blah blah blah blah“.

 

[COcheesehead]

Abigail Johnson NW $17B
Jack Bogle NW $80M

Those extra zeros have to come from somewhere.

ETA: I still have an old small 401K at Fido. I thought I was getting the near zero fees. Who knows? If the 15bp are being charged on this account, it would be about $1,200 over the last five years. Maybe AJ will send me a check.

I think its for third party 401k accounts through the "Funds Network". Whatever that is.

 

[swakyaby]

It’s probably right there in plain daylight. Page 172, section F, paragraph 13, sub-section C, line 84.

That was my laugh for the day, in a dark sort of way.

 

[samclem]

Maybe this is one answer to how Fido plans to make money with their zero ER funds.
I don't think my Solo501k with Fido is affected, but I'll check.

 

[braumeister]

Mr Prosser: But, Mr Dent, the plans have been available in the local planning office for the last nine months.
Arthur: Oh yes, well as soon as I heard I went straight round to see them, yesterday afternoon. You hadn’t exactly gone out of your way to call attention to them had you? I mean like actually telling anybody or anything.
Mr Prosser: But the plans were on display…
Arthur: On display? I eventually had to go down to the cellar to find them.
Mr Prosser: That’s the display department.
Arthur: With a torch.
Mr Prosser: The lights had probably gone out.
Arthur: So had the stairs.
Mr Prosser: But look, you found the notice, didn’t you?
Arthur: Yes, yes I did. It was on display at the bottom of a locked filing cabinet stuck in a disused lavatory with a sign on the door saying beware of the leopard.

 

[audreyh1]

Fidelity Facing Labor Department Probe Over Hidden Fees: Report | Fortune

Fidelity is under probe by the labor department for charging hidden fees.

The a Wall Street Journal has a more in depth article but requires a subscription.

This seems to be about Fidelity Asset Manager funds from what little I could read of the WSJ intro.