BOK Financial Reportedly Accused of Only Self-Interest in connection with 401(k) Plan Funds
Are you concerned about investments you made with BOK Financial Inc.? If so, the securities attorneys at the White Law Group may be able to help you by filing a FINRA Dispute Resolution claim.
According to PlanSponsor on March 16, investors in BOK Financial’s 401(k) plan have filed a lawsuit alleging the company, its retirement plan committee and Cavanal Hill Investment Management Inc., a subsidiary of BOK, have failed to administer the plan in the interest of participants and purportedly mismanaged the plan.
The participants allege the firm and its subsidiary manage the plan “for the benefit of BOK at the expense of plan participants,” according to PlanSponsor.
The complaint states that BOK and Cavanal Hill are responsible for managing key investment options for plan participants including the target-date funds (TDFs) and the capital preservation option, among others. These investment options are reportedly BOK’s proprietary funds and are not products that a disinterested fiduciary would choose, according to the complaint. The complaint further notes that most ERISA-governed plans this size don’t typically offer BOK’s proprietary funds.
The plaintiffs further alleged that BOK’s proprietary funds are excessively priced for the large plan market, and the performance of those funds does not make up for the higher price that participants must pay.
According to the complaint, “Defendants’ self-interested and imprudent conduct has cost the plan millions of dollars in excessive fees and lost investment returns during the class period. Based on this conduct and the other conduct alleged herein, plaintiffs assert a claim against defendants for breach of their fiduciary duties of loyalty and prudence (Count One) and against BOK for failing to properly monitor the committee and its members (Count Two).”
The lawsuit further alleges that there is an additional layer of fiduciary responsibility for collective investment trusts (CITs) compared to mutual funds.
BOK and Cavanal Hill purportedly mismanaged the BOK TDFs by exclusively using mutual funds as underlying investment holdings and failing to consider lower-cost collective trust versions of the same investments, according to the lawsuit.
The plaintiffs further allege that BOK and Cavanal Hill not only failed to consider alternatives to mutual funds, they also failed to obtain the lowest-cost shares of mutual funds held within the BOK TDFs. The plaintiffs also claim the retirement plan committee failed to investigate alternatives to the plan’s money market fund, such as a stable value fund or other mutual funds from unaffiliated fund companies.
Filing a Complaint against your Brokerage Firm
If you are concerned about investments with BOK Financial, the securities attorneys at The White Law Group may be able to help you by filing a FINRA Dispute Resolution claim.
These claims are distinct from the class action and could be pursued concurrently. Please contact the offices at 1-888-637-5510 for a free consultation.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm. The firm represents investors throughout the country in claims against their brokerage firm.
For more information on the firm and its representation of investors, visit www.WhiteSecuritiesLaw.com.