Pensions Dump Fidelity for Redemption Fees

A growing number of pension plan administrators are giving Fidelity Investments the boot before the mutual fund giant imposes a new mandate requiring 401(k) providers to enforce short-term redemption fees on an even-handed basis, InvestNews reports.
Pension plan recordkeepers are balking at new provision, which is scheduled to take effect on Dec. 31, because the burden of tracking short-term redemption fees creates new administrative headaches and Fidelity has declined to offer additional technical support. Short-term redemptions are especially difficult to track on a participant basis in omnibus accounts.
A compliance officer at Barclays Global Investors said last month that Fidelity isolated itself by raising the bar on administrative guidelines involving redemption policies.