The "Cultural" Fix for Funds

Doug Klein of 401(k) Education says compliance officers will fail unless they feel free to report abuses directly to top execs

One of the biggest problems within fund companies is compliance, says Doug Klein, a founder and director of communications at 401(k) Education, a Verona (N.J.) fee-only consulting firm that provides advice to retirement-plan sponsors. Klein, who has studied the industry's inner workings, stresses the need for directors to hire a team of surveillance experts and create an open avenue of communication.

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