prohibited transaction???

[fidu]

parent company owns two subsidiary companies -

one is the plan sponsor, the other is the investment manager for that plan sponsors retirement plan?

is this problematic for any party in interest, affiliate, or prohibited transaction rules????

thanks?

[Erik Read]

Is the plan paying the other company to be the investment manager? Or, is the second company just designated (hint) as the investment committee?

Which employee's are designated as the "trustee's" and who does the plan specify as the investment committee?

Also - what does the Investment Policy Statement say about hiring a "manager" for the plans assets?

Need more details before we can hypothesis that there is a PT...

[fidu]

1. the plan (sub 1) is most certainly paying the investment company (sub 2) for investment services.

2. the plan designates a third party bank that is not affiliated with the parent or either sub as trustee. the investment committee is a group at the sponsor (sub 1) who chooses the inv. mgr.

3. plan permits inv commitee to hire inv. mgr for managing investment of plan assets.

[fidu]

any additional clarification based on the additional info I provided would be greatly appreciated.

thanks

[fidu]

investment committee is made up of emplyees of sponsor and they choose the investment manager(s)