High Cost of Sarbanes-Oxley

In the news today, an article on the high cost of Sarbanes-Oxley in the audit, legal, and insurance areas. The article by Bloomberg.com states that insurance premiums for D & O insurance is up as much as 1000 percent. Forbes.com reports here that U.S. pension funds have diverted billions of dollars away from stocks and into hedge funds and other alternative investments recently. The article warns about the higher costs of these funds and the lack of experience of the managers of these funds (important matters for ERISA plan fiduciaries to consider). The article states that a fifth of all plans surveyed showed they are using hedge fund portfolios.