Fidelity Bond

[Guest Matt77]

Have a client with nearly $2,000,000 in nonqualified assets.....mostly art and furniture. Makes up over 95% of total assets of plan. the problem is they are having trouble finding an insurance Co. that will issue them a fidelity bond because of the type of assets. Any ideas on how to get a waiver on the independent audit requirement without a bond or know who would provide a fidelity bond for these type of assets. Thanks

[Guest b2kates]

Who is the trustee? Where are the assets housed? Likely not a corporate trustee.

Properly stored, with a corporate trustee should be able to obtain bond.

Why would a plan be so invested in collectibles? Is the spread diversified enough to be prudent

[Mike Preston]

I would think that this is the exact situation where the requirement for the audit makes sense. Hire a CPA. Since there is only $50,000 in other assets, once the audit is done one year, the audit a second year should be a breeze. Unless, of course....well, let's not go there......