More than a dozen major mutual fund providers and investment advisors have settled with federal and state regulators over market-timing and late-trading practices and set aside money to reimburse investors. For plan sponsors and administrators, the challenge is figuring out what role they will play in distributing millions from those settlements to employees. Because many plan sponsors are confused about how they should handle these settlements, fund administrators would probably earn the respect of these clients if they proactively keep them informed of developments.

The Society of Professional Administrators and Recordkeepers (SPARK) of Simsbury, Conn., recently held a meeting on the issue and formed a task force to investigate what actions plan administrators should be taking.

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