The mutual fund industry is facing much criticism over their fee structure, and the debate just got heavier with The Supreme Court involved in possible consequences. This could set the stage for exchange traded funds (ETFs) to take off with the market share mutual funds are going to lose.
The latest development helping to bring the issue to the surface comes from the Eighth Circuit U.S. Court of Appeals, and which ever way the ruling goes, it will have definite consequences. It decided to reopen a case against RiverSource which had been turned down by a lower court.
Hannah Glover for Ignites explains that the case centers on complaints from shareholders in 11 RiverSource funds who claim that Ameriprise breached its fiduciary duty by charging more for mutual funds than for similar institutional accounts.