Fiduciary issue

[dmb]

Does anyone know of a court case involving owners self directed accounts that made a large gain and all other employees in general fund with a loss or small gain? Were owners sued for fiduciary breach? (assuming owners are also trustees)

Thanks.

[Jon Chambers]

Owners can't have self-directed accounts that are not available to others, under the BRF rules. Assuming that the self-directed accounts were available to all employees, but only the owners elected to use them, I doubt you have much of a case. If self-directed accounts were not available to all employees, you may be able to argue that there were no self-directed accounts, just one big pool, and consequently gains from self-directed accounts should be shared with other employees, using the logic that the alternative is a disqualified plan. Hope this helps,