Many fund executives have been bracing for tremendous downward pressure on fees, but that is unlikely to happen, largely because of investorsÂ’ general lack of concern when it comes to fees, according to a Financial Times editorial.

Early on in the fund scandal, however, t certainly seemed as if the industry would face both market and regulatory pressures to decrease fees. The $1 billion in fee reductions that New York Attorney General Eliot Spitzer negotiated in his settlements with mutual fund companies was expected to put competitive pressure on other fund companies to also decrease their fees. Fund executives also thought that investors would become more sensitive to fees, with all the attention that the scandal and subsequent reforms were drawing to fees.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.