Belgarath Posted August 2, 2001 Share Posted August 2, 2001 The preamble to the PWBA regs (Oct 19, 2000) makes it reasonably clear that stocks, etc., held by a registered broker-dealer, are qualifying assets. I don't know much about the stock investment end of financial services. Could we reasonably assume that in an annual data gathering pamphlet, if the client answers "yes" to a question such as, "Are the stocks and bonds held by a registered broker-dealer" that these are qualifying assets? Or do we need to take the extra step to ask who actually physically holds the stock certificates? Obviously we'll also need to know the name of each brokerage firm for the SAR disclosure. I'd be interested to hear how the rest of the world is handling this. Thanks in advance! Link to comment Share on other sites More sharing options...
rcline46 Posted August 3, 2001 Share Posted August 3, 2001 The brokerage statements must be available for the participants, so they would be proof to match the asset report. Get the statements for proof. Link to comment Share on other sites More sharing options...
Belgarath Posted August 3, 2001 Author Share Posted August 3, 2001 Thanks for the response. I probably wasn't too clear on what I'm trying to find out. Suppose (as Trustee) you go down the street to your local stockbroker - you instruct them to purchase you 1000 shares of IBM. This is where my ignorance of the stock world comes in. I've heard that you have a choice - you can have the stock certificates physically delivered to you, to keep in your posession, although this is rarely done. Or you can have the stockbroker hold them in the brokerage account, and you will just get a reporting monthly, annnually, whatever. I'm not sure if the above is accurate. If so, it would seem that if as Trustee you physically hold the certificates, it would NOT be a qualifying asset. Hence my question - as a TPA, must one take the extra step to determine who actually holds the stock certificates, or is an affirmative answer from the Trustee that the stock was PURCHASED from a registered broker sufficient? Maybe I'm just being paranoid! Thanks again. Link to comment Share on other sites More sharing options...
rcline46 Posted August 3, 2001 Share Posted August 3, 2001 Must be held in brokerage account. If stocks/bonds are DELIVERED to the owner (VERY VERY RARE TODAY) which could have occured years ago - nonqualifying assets. Link to comment Share on other sites More sharing options...
Belgarath Posted August 3, 2001 Author Share Posted August 3, 2001 Muchas Gracias! Link to comment Share on other sites More sharing options...
AndyH Posted August 4, 2001 Share Posted August 4, 2001 rcline46: Would you please elaborate about "the brokerage statements must be available for the participants". I haven't focused much on this issue. Please explain. Thanks. Link to comment Share on other sites More sharing options...
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