Morningstar Finds Itself on Wrong End of Spitzer Subpoena
Last week, New York attorney general Eliot Spitzer subpoenaed Morningstar Associates, LLC, an advisory firm wholly-owned by parent company Morningstar, Inc., asking for information and documents in connection with an investigation.
Morningstar issued a statement disclosing the subpoena. "While the request is very broad, it specifically asks for information about the investment consulting services we offer to retirement plan providers, including fund lineup recommendations for retirement plan sponsors," said Morningstar chairman and CEO Joe Mansueto. He promised to cooperate fully with Spitzer. "We understand the importance of protecting investors’ interests, and we have always been committed to managing our business with integrity, openness, and honesty," he said.
According to a Morningstar Associates disclosure statement, the firm provides investment consulting services to plan providers, plan sponsors, and insurance companies.