A decision has been handed down by the appeals court in the excessive fee case involving Harris Associates
, advisor to the Oakmark Funds
In his decision, Judge Frank Easterbrook
of the Seventh Circuit in Chicago said, "A fiduciary must make full disclosure and play no tricks but is not subject to a cap on compensation. The trustees (and in the end investors, who vote with their feet and dollars), rather than a judge or jury, determine how much advisory services are worth."
Ropes & Gray
attorney John Donovan
, who represented Harris, said that since the ruling upheld one from a lower court it may have more value as a precedent.
The fee issue is not resolved for good though; there are still cases against Fidelity and Federated winding their way through the courts.
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