Fidelity Must Face Trial Over Duty To Monitor 401(k) Plan
By Kevin Stawicki (March 27, 2020, 7:04 PM EDT) -- Fidelity can be held liable for failing to monitor proprietary mutual funds in its workers' 401(k) retirement plan, a Massachusetts federal judge ruled Friday, saying whether the financial services company's lack of diligence caused losses must be resolved by a jury.
U.S. District Judge William G. Young said Fidelity incurred liability under the Employee Retirement Income Security Act for breaching its fiduciary duty by failing to monitor its proprietary funds and control record-keeping costs in its workers' retirement plan.
"Allowing a recordkeeper easily to disclaim fiduciary liability for its proprietary funds contradicts the goals of ERISA," Judge Young said, adding that...
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