Experts say the leveling off of new business development at Morningstar is a byproduct of steps to expand too quickly. Increased silence at the company in recent months could also be a byproduct of concern over its forthcoming initial public offering, one expert noted.
The latest regulatory inquiry haunting the company stems from its 2002 expansion into the retirement plan consulting business. Last month,
Industry experts also are also waiting to see whether regulators delve into business arrangements in which funds pay Morningstar for rankings in some situations. The company defends its integrity by maintaining its use of a Chinese wall to separate analyst from other money-making departments.