The results of this 2004 action were immediate and massive. 401k plans that had been receiving 50 to 100 basis points in revenue sharing from non-proprietary funds were cut to a maximum of 25 basis points for fixed income funds and a 35 basis point maximum for equity funds.
That is, even though these 401k plan record-keepers had negotiated contracts that allowed them to collect greater revenue sharing from non-proprietary mutual funds on behalf of 401k plan participants the record-keepers told the funds to keep the money.