Plaintiffs in this case allege that the Oracle Corporation 401(k) Plan’s recordkeeping and administrative fees paid to Fidelity were excessively high verses what the market would dictate. The case will go to trial, as the judge contends that the revenue sharing agreement in place must be proved as reasonable under all circumstances. This cannot be determined at this point as the factors which informed fiduciary decision making are not all known.
Additionally, due to the structure of the trust agreements with Fidelity, plaintiffs claim conflicts of interest between Fidelity and Oracle, as Fidelity is the sixth largest institutional shareholder of Oracle stock. As such, Fidelity has the ability to influence the stock, potentially harming participants and retirement plan performance.
www.planadviser.com; March 27, 2017.