States are beginning to pursue whistleblower provisions. Confidential informant whistleblower actions have saved the Feds a lot of money. Securities regulators in two states—Indiana and Utah—are enlisting the aid of these informants to enforce their own fraud statutes and protect residents from financial harm. Other states have expressed interest in pursuing similar policies.
State-mandated automatic IRAs are being proposed by various state legislatures but they are meeting strong opposition from trade associations because they could compete with the private sector and reduce consumer choice. “Do you really want your state legislature to set up a retirement program for you? AND make it automatic? Whatever that means. If it’s an IRA, you bet it’s your money.
ACTIVE vs PASSIVE. Morningstar did a study that shows that higher fees have the biggest impact on performance. The worst, according to Morningstar, large cap value managers. According to Morningstar, about half of the actively managed large-cap growth funds that existed 10 years ago were able to survive the past decade without being merged or closed. Only 7 percent of those large-cap funds managed to both survive and beat their passive benchmarks over the 10-year period through June.