Practice

More than a decade ago, Fidelity Investments of Boston formed Institutional Retirement Services Co. to target the small-business 401(k) market. Today, with the retirement plan market tighter than ever, fund firms have begun to pursue the ultimate small business: individual 401(k)s.

It doesn't happen very often. But when independent directors who sit on mutual fund boards become the focus of criminal allegations, lawsuits, investigations by the Securities and Exchange Commission or public scrutiny, fund companies and their boards of directors often find they must make an important decision. Should they ask the trustee to resign or stay the course?

The downfall of Enron of Houston evidently has not caused some retirement plan participants to be wary of how much they have invested in their company's stock, according to a recent survey by Boston Research Group of Hopkinton, Mass.

What does it take to find a financial advisor well versed in 529 plans and other college savings vehicles?

Transamerica Retirement Services, a Los Angeles-based retirement services provider that specializes in small to mid-sized companies, has found that smaller companies are moving faster than anticipated to help their employees take advantage of increased retirement plan contribution limits set forth in the Economic Growth and Tax Relief Reconciliation Act of 2001.

Just weeks after Merrill Lynch of New York settled a case with the State of New York to improve its disclosure of business dealings with the companies it analyzes, the New York investment and banking firm faces a smattering of lawsuits.

Mutual funds that are used specifically as investments of variable annuities will now follow disclosure rules more in line with the rest of the fund world.

Hartford Life of Hartford, Conn., is expanding its 401(k) small-business operations, a niche that has been largely ignored by many other retirement savings plan providers. So far, the strategy has worked for Hartford Life. It expanded its 401(k) business by 55% in 2001, with sales of $850 million.

ORLANDO - Be prepared to get to know your Securities and Exchange Commission compliance officers better. The SEC plans on making longer and, perhaps, more frequent compliance examinations.

Timing is everything.