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10b-10 confirmations


Guest dietpepsi

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Guest dietpepsi

Is anybody familiar with security law? I am being told that plan participants in a 403(b) plan, utilizing a custodial account with mutual funds, must receive a confirmation for every transaction in order to comply with security law. My participants don't want to receive these confirmations. Is there anything I can do?

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I did a search and I found that this applies to directors, officers, & principal security holders. It deals with their reporting to SEC insider trades within 2 days of trade date. 10b-10 means that broker/dealer/fund must report quickly so the report can be filed with SEC.

I couldn't find anything that related to ordinary participants in any type of plan. But I could have missed something.

JanetM CPA, MBA

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Is anybody familiar with security law? I am being told that plan participants in a 403(b) plan, utilizing a custodial account with mutual funds, must receive a confirmation for every transaction in order to comply with security law. My participants don't want to receive these confirmations. Is there anything I can do?

DP:

Q regardless of what secton is invovled what is the benefit to the plan or the fund in not reporting trade confirms to the plan participant?

If you google "LaRue" you will notice that the US Supreme Court is reviewing a suit by a 401k plan participant against the plan for a breach of fiduciary duty arising from the failure to follow his investment instructions. Dont you think that the funds and plan fiducaries would want confirms reported to the participants so there would be documentary proof of what occurred and would provide the participant with the opportunity to question a transaction if it was not corrrect?

Its not a question of whether the participants want to receive the confirms, its a question of risk management for the plan. Have you discussed your inquiry with the fiduciary, plan administrator or counsel?

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