Plan participant with commingled account balance has personal broker who wants breakdown of the investments in the commingled accounts

[Guest mpark]

We have a plan participant in our Profit Sharing Plan that has a personal financial planner/broker for her personal assets. This participant's Profit Sharing and Safe Harbor account balances are held in commingled brokerage accounts with many type of investments (bonds, mutual funds, securities, etc.).

The participant's personal broker has contacted the Plan Administrator requesting the actual investments for the commingled accounts. The participant has already been provided with the 2003 Summary Annual Report.

The broker is under the impression that each participant has assets earmarked for each participant, which is not the case.

What is the Plan Administrator required to provide the broker under the law? What if he had a POA on behalf of the participant?

[david rigby]

The broker is under the impression that each participant has assets earmarked for each participant, which is not the case.

Is this broker 9 years old?

[Demosthenes]

The broker is an unrelated third party, you are under no obligation to provide him with anything.

On the flip side, if the broker is a financial planner, the information is needed to produce a complete analysis of the participant's finances.

How about providing an explanantion of the commingled account/balance forward method being employed and a copy of the Plan's Investment Policy? Send it via the participant rather than direct to the broker.

[Guest mpark]

You'd be surprised how many phone calls we get by brokers who think the whole world is a self-directed 401(k) account in a platform situation.