The financial service giant Nationwide has a corporate slogan "Nationwide is on your side." However in a class action suit originally filed in the United States District Court in Connecticut 2001, Nationwide is charged it with accepting "revenue sharing payments" from mutual funds as the cost of being included as investment options in its retirement plans. The suit claims that receipt of these payments violates the Columbus, Ohio-based company’s "fiduciary duty.,.
Nationwide denies any wrongdoing and denied that it was a fiduciary to the plan. In a preliminary ruling issued Nov. 6, 2009, the Court found Nationwide "may be a fiduciary", but this really begs the issue: Whose side is Nationwide on when it selects investment options for 401(k) plans?
Click this link to read the entire article. http://www.dailyfinance.com/story/retirement/is-nationwide-on-your-side-not-everyone-thinks-so/19326327/
Tags: 401k, insurance, investments, Nationwide, revenue sharing
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