Does BrightScope have a way to discover “revenue sharing” arrangements?
BrightScope has working relationships with many of the largest trading platforms and custodians. These firms provide BrightScope with their full fund lists, including fund-level revenue-sharing information: 12b-1 fees, sub-TA fees and finder’s fees. Currently these fees are not required to be disclosed to 401k participants. BrightScope utilizes this database of revenue-sharing information by mapping each 401k plan to its recordkeeper/custodian in order to ensure that our revenue sharing information on each plan is accurate. In the Plan Management Dashboard, BrightScope performs a full expense ratio breakdown, which separates out a fund’s management fee, 12b-1 fees, sub-TA fees, acquired fund fees and other asset-based fund expenses included in the fund. BrightScope is working closely with Congress and the Department of Labor to ensure that the new fee disclosure requirement adequately discloses all revenue-sharing payments.
