Jump to content

IRA-Only Hedge Fund Investments....Plan Assets?


Recommended Posts

Hedge fund has concentration of benefit plan investors (BPIs) nearing 25% threshold under ERISA 3(42) and 29 CFR 2510.3-101(f). However none of the BPIs are qualified retirement plans, only IRAs.

Were the level of IRA investment to reach 25% would the hedge fund manager be subject to full ERISA Title I duties when none of the underlying investors are ERISA-covered plans?

Link to comment
Share on other sites

I respectfully disagree with jpod, as 29 CFR 2510.3-101(f)(2)(ii) clearly covers IRA's, and hence the hedge funds are now BPI's for the IRA's, and the hedge fund manager is now subject to ERISA... this is one of the few cases where IRA's cross the line and come under the ERISA regulations...

Link to comment
Share on other sites

Don't agree. The assets of the fund would be plan assets for purposes of the IRC, i.e., Section 4975, but not for purposes of ERISA Title I. Please show us something in the Reg., or the preamble to the Reg. or the proposed version of the Reg., that says otherwise.

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...