After repeated inquiries by FORBES, Fidelity Investments has reversed its fiat that rival mutual funds limit the price breaks they give to get into 401(k) retirement plans Fidelity administers for corporations. The discounts-technically rebates of expenses that might equal 1% of assets-often topped 60 basis points and in effect go straight to investors. For competitive reasons Fidelity would have to match the hefty cuts to get business for its own funds line. In 2004 Fidelity ordered the discounts be cut in half-"to level the playing field," it explained. But amid public criticism of high 401(k) fees, rivals screamed price-fixing. A Fido flack said the new move was long in the works.
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