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This article discusses the move of fund directors in the U.S. to consult their advisors and legal counsel on further steps that should be taken to protect against liability for errors or misstatements in prospectuses. They made the move in response to the decision of the Supreme Court in the case Janus Capital Group v. First Derivative Traders. Art Deliburt, partner at K&L Gates, advises to tighten the prospectus due diligence process as a defense against liability.

The article reports on the lawsuits filed against mutual funds Morgan Stanley Investment Advisors and Van Kampen Asset Management by common stockholders. The lawsuits allege that the firms were giving preferential treatment to auction rate preferred stockholders (ARPS) by allowing their shares to be redeemed at par during the 2009 market downturn. The lawsuits also stated that the funds have no obligation to redeem ARPS at liquidation value.

The article reports on the recovery of director compensation along with the markets in 2009 as many boards moved back into their normal pattern of increases. An increase of 7.1 percent was seen by directors during the year based on data from Management Practice. It is noted that in 2008, directors decided to keep their pay steady and not take an increase for additional meetings.

This article reports on the decision of the U.S. Supreme Court to uphold the Gartenberg standard for fund fees in 2010. The court overturned a ruling made by the Court of Appeals for the Seventh Circuit that rejected the Gartenberg standard. The court compared the fees imposed by advisors for their non-mutual fund clients, such as institutions. Justice Clarence Thomas said the court's decision does not represent an endorsement of the standard.

The article announces that Jamie Baxter, independent vice-chair of the Putnam Funds board, was elected chair of the Mutual Fund Directors Forum.

The article reports on the joint search by Indiana Public Employees' Retirement Fund and the Indiana State Teachers' Fund for investment management firms that will be given the task of handling their defined contribution programs.

The article focuses on the plan of OppenheimerFunds to market its educational college savings platform Keeping College Within Reach through social networking Web sites Facebook and Twitter within the next two to three months.

The article reports on the plan of the Alabama State Personnel Board to issue a request for proposals for a provider for its roughly 380 million U.S. dollars, 11,000-life deferred compensation plan. The decision came after the board voted to cancel its contract with long-term provider Nationwide Retirement Services. General counsel of the board Alice Byrne explains the reason behind the move.

The article reports on a request for proposals (RFP) issued by the State of South Carolina Deferred Compensation Commission for a retirement plan administrator for the 401(k) and 457 plans of the state. The deadline for submission of the RFP will be on July 15, 2009. The plan administrator will provide recordkeeping, education and investment management services, among others. The current plan administrator of the commission is the firm ING. The contract is scheduled to start in January next year once the bid is awarded.

The article reports on the plan of online 401(k) ratings system company BrightScope to expand the number of plan ratings it has in its system. The move is aimed at allowing plan sponsors across the country to compare their plans against a benchmark. The novice ratings system rates plans based on components such as cost, company matches, investment menu, participation rate, account balances and salary deferrals.

This article reports on the move of state college savings plans in the U.S. to look to social media as a way to network with and reach out to plan participants in 2009. Different Web sites, such as Facebook and Twitter, have been examined by many programs for their possible use. The Rhode Island Higher Education Assistance Authority launched market research on the use of social networking Web sites.

The article reports on the request for proposal issued by the Oregon Investment Council seeking a general investment consultant to handle the state's deferred compensation plan, the Oregon Savings Growth Plan. According to Michael Viteri, equity investment officer with the Office of the State Treasurer, the consultant will primarily survey the current landscape and explore what types of services are available.

The article reports on the expectations from a joint one-day hearing on qualified investment options for target-date funds that will be held by the U.S. Securities and Exchange Commission (SEC) and the Department of Labor on June 18, 2009. In particular, the two agencies will look into target-date and lifecycle funds and the issues surrounding them, including risks and transparency. David Krein of Dow Jones Indexes anticipates a new benchmarking dimension added to the investment option.

The article relates the reactions of mutual fund industry participants to the omission in U.S. President Barack Obama's budget of a provision that would require all 401(k) plans to include automatic enrollment in 2009. Opponents reportedly argue that mandatory automatic enrollment would impede plan innovation and allow more employers to eliminate matches due to increasing costs associated with more employees in the plan. Proponents, on the other hand, point out that requiring automatic enrollment would boost corporate costs.

The article reports on the preparation by Fidelity Investments to launch its second set of managed accounts into the 401(k) sector in 2009.

The article reports that more fiduciary liability are increasingly being taken by registered investment advisors many of whom become Employee Retirement Income Security Act of 1974 (ERISA) 3(38) investment managers where the liability for investment monitoring and selection is transferred from the sponsor of the plan to the investment manager. Jason Roberts of Reish Luftman Reicher & Cohen, Jeff Gratton of SageView Advisory Group, and Chris Rowey of RIA Benefit Funding Services Group all agree that plan sponsors welcome this development.

The article reports on the drafting of request for proposals by the City of San Jose in California for an investment consultant for its greater than 400 million U.S. dollars, about 10,000-life deferred compensation plan in 2009.

The article reports on the frequent meetings held by the retirement services division of Lenox Advisors with its clients.

The article reports on the frequent meetings held by the retirement services division of Lenox Advisors with its clients.

The article reports on the suggestion of The SPARK Institute that policy makers should focus on building up the employer-sponsored retirement plan system.

The article reports on the findings of a survey by AXA Equitable which showed that women give importance to receiving guaranteed income for life than men. The Consumer Trends in the Current Market Environment survey showed that 75% of women prioritize the receipt of guaranteed income for life compared to 58% of men who agree on the issue. Such fact is attributed by Barbara Goodstein, AXA's executive vice president and chief innovation officer, to women being concerned with longevity.

The article announces that the City of Baltimore in Maryland is looking for a recordkeeper for its 9,263-life deferred compensation plan worth 228.7 million U.S. dollars.