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  • Derf November 2019
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SEC Calls Out Conflicts Of Interest In TDFs

FYI: The Securities and Exchange Commission took aim at conflicts of interest in target-date funds on Thursday, calling out a fund structure that holds the majority of 401(k) investors' assets.

The agency's Office of Compliance Inspections and Examinations issued an alert saying some TDFs provided "incomplete and potentially misleading disclosures" around conflicts of interest, such as those that could arise from "the use of affiliated funds and affiliated investment advisers."

Such a fund structure — in which a TDF provider uses its in-house investment funds as the underlying building blocks for its TDFs — is common among the largest target-date providers.


  • I happen to run across this article after readings Teds post.
    Principal sued for stacking its TDFs with proprietary funds
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