Shelf space payments where mutual funds pay a platform a fee for space on their 401(k) shelf of investments is the newest thing, especially as a way to replace the loss of revenue sharing. One provider, in particular, is under investigation for these payments.
These payments are legal for the time being, but I always err on the side of caution. If you’re an advisor using these type of funds, my belief is that you should willingly disclose the arrangement even that you’re not involved in the arrangement. I’d rather have you disclose such information, rather than your competition because it’s all about appearances and not disclosing makes it look like you’re hiding something (and you’re not since it’s not your arrangement). Just my two cents.