{"id":3935,"date":"2019-03-13T18:39:37","date_gmt":"2019-03-13T22:39:37","guid":{"rendered":"http:\/\/therosenbaumlawfirm.com\/blog\/?p=3935"},"modified":"2019-03-13T18:39:37","modified_gmt":"2019-03-13T22:39:37","slug":"the-problem-with-shelf-space-payments","status":"publish","type":"post","link":"https:\/\/therosenbaumlawfirm.com\/blog\/?p=3935","title":{"rendered":"The problem with shelf space payments"},"content":{"rendered":"<p><span class=\"s3\">\u201c<\/span><span class=\"s3\">You like potato and I like <\/span><span class=\"s3\">potahto<\/span><span class=\"s3\"><br \/>\n<\/span><span class=\"s3\">You<\/span><span class=\"s3\"> like tomato and I like <\/span><span class=\"s3\">tomahto<\/span><span class=\"s3\"><br \/>\n<\/span><span class=\"s3\">Potato, <\/span><span class=\"s3\">potahto<\/span><span class=\"s3\">, tomato, <\/span><span class=\"s3\">tomahto<\/span><span class=\"s3\"><br \/>\n<\/span><span class=\"s3\">Let\u2019s call the whole thing off<\/span><span class=\"s3\">\u201d<\/span><\/p>\n<p><span class=\"s3\">Fidelity is being sued and being investigated for shelf space payments they receive from mutual fund companies for room on their fund platform. They\u2019re not the only provider to receive these fees and I find it totally problematic. The reason it\u2019s a problem because it is essentially a replacement for revenue sharing and while government investigators are starting to figure out about it, ERISA litigators knew before that.<\/span><\/p>\n<p><span class=\"s3\">This shelf space fee isn\u2019t much of a surprise. Revenue sharing was an attractive solution for third-party administrators, especially when they didn\u2019t have to disclose it. When fee disclosure regulations were implemented, I had stated my concern that fees would be invented in order to replace revenue sharing and possibly to skirt the fee disclosure regulations. How did I know this? I remember one third-party administrator that used to pocket revenue sharing without disclosing it, created a new fee that it was absurd, They created a daily custodial access fee of 25 basis points when any reasonable person would know that must custody fee range from 5 to 10 basis points. <\/span><\/p>\n<p><span class=\"s3\">Don\u2019t be surprised that the Department of Labor won\u2019t offer an interpretative bulletin to update their fee disclosure regulations to cover shelf space payments.<\/span><\/p>\n<div class=\"sharedaddy sd-sharing-enabled\"><\/div>\n<p><span class='st_sharethis' st_title='{title}' st_url='{url}' displayText='ShareThis'><\/span><\/p>","protected":false},"excerpt":{"rendered":"<p>\u201cYou like potato and I like potahto You like tomato and I like tomahto Potato, potahto, tomato, tomahto Let\u2019s call the whole thing off\u201d Fidelity is being sued and being investigated for shelf space payments they receive from mutual fund &hellip; <a href=\"https:\/\/therosenbaumlawfirm.com\/blog\/?p=3935\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n<p><span class='st_sharethis' st_title='{title}' st_url='{url}' displayText='ShareThis'><\/span><\/p>","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/therosenbaumlawfirm.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/3935"}],"collection":[{"href":"https:\/\/therosenbaumlawfirm.com\/blog\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/therosenbaumlawfirm.com\/blog\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/therosenbaumlawfirm.com\/blog\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/therosenbaumlawfirm.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3935"}],"version-history":[{"count":1,"href":"https:\/\/therosenbaumlawfirm.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/3935\/revisions"}],"predecessor-version":[{"id":3936,"href":"https:\/\/therosenbaumlawfirm.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/3935\/revisions\/3936"}],"wp:attachment":[{"href":"https:\/\/therosenbaumlawfirm.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3935"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/therosenbaumlawfirm.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3935"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/therosenbaumlawfirm.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3935"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}