Fidelity Faces State Inquiry Over Fees Charged for 401(k) Plans

Massachusetts Secretary of Commonwealth requested information
Fidelity says it discloses fund fees in 401(k) plans

A pedestrian passes a Fidelity Investments branch in New York, U.S.Photographer: Victor J. Blue

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By Michael McDonald

March 4, 2019 at 4:08 PM UTC

This article is for subscribers only.

Fidelity Investments is facing more scrutiny over fees it charges some mutual funds for using its platform to access retirement plan customers.

The Massachusetts Secretary of the Commonwealth said its securities division sent a letter on Feb. 27 to Boston-based Fidelity requesting information about those fees. The inquiry follows a Feb. 21 lawsuit against Fidelity by an investor in T-Mobile USA Inc.’s 401(k) plan that claims the firm conceals so-called infrastructure fees.