Not only have investors stood by scandal-tainted funds side, but so have 401(k) plan sponsors. Despite the steady uproar from shareholder activists since numerous mutual fund providers fell under regulators swords last year, few employers have gotten around to making administrative changes in their 401(k) plans.
A newly released study from Plan Sponsor magazine reveals roughly half of the respondents in a survey group representing eight million participants made any significant changes to their 401(k) plans despite numerous reports of improper trading activities within retirement plans.
Only 5% of the survey group switched financial advisers or plan providers after the fund scandals moved into high gear.
"The mutual fund trading scandal has served as yet another wake-up call for plan sponsors that they must be ever-vigilant in helping to safeguard retirement plan balances," said Nevin Adams, editor-in-chief of Plan Sponsor.
The good news is that 74.6% of the employers , a record number, surveyed now use investment policy statements to help select and monitor mutual funds offered to participants, but only 22.4% reported increased fund oversight and even fewer, 19.5%, solicited additional help from a financial adviser.