SEI Investments Company has agreed to a settlement in a self-dealing lawsuit in which plaintiffs claim that non-competitive SEI investment vehicles were offered with the SEI 401(k) Plan as a means to generate fees for SEI and its affiliates, propping up SEI-affiliated investments in the pursuit of SEI’s business objectives. The lawsuit claims that other non-proprietary alternatives would better serve plan participants. According to the settlement agreement, defendants will pay $6.8 million to a Qualified Settlement Fund. The agreement also includes procedures regarding the management of the 401(k) Plan, such as retaining services of an unaffiliated investment consultant to evaluate the plan’s investment line-up and review the Investment Policy Statement (IPS), continuing to pay all recordkeeping fees for the plan, and requiring SEI plan investment committee members to participate in an ERISA fiduciary duties training session.
www.planadviser.com; July 31, 2019 .