Prudential sued for excessive fees
From Morningstar
Prudential has been accused of charging excessive fees for one of its variable annuities. A recent lawsuit alleges that the expense fee Prudential charges for its Discovery Select Variable Annuity is excessive compared with the economic value of the benefit. Prudential maintains that its fees are "within industry norms," but academic research indicates that the mortality and expense charges that life-insurance companies currently levy are far higher than the actual cost of providing the benefit.

Barclays blows its horn
From The Wall Street Journal
As if Barclays new exchange traded funds weren't getting enough press, the firm is rolling out a $12 million print and television advertising campaign to promote them. The campaign is trying to change the image of index funds from stodgy to trendy. The ads are also an attempt to move beyond the institutions the firm traditionally serves, and attract individual investors.

SEC creates fraud task force
From Morningstar
The SEC has created a financial fraud task force to protect investors from wrongful practices in the financial industry. The group of 10 accountants and lawyers will focus on reporting and accounting investigations. According to the SEC, the team will work on "complex and novel" issues, and is intended to increase the speed at which cases are brought. The agency brings 90 to 100 financial enforcement actions each year.

 

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