Changes to Portfolios

[Guest Karenm]

I have a situation where the client's advisor changed the lifestyle portfolios (as agreed by Plan fiduciaries); they sent the change to recordkeeper who applied the changes to all participants, across the board, even participants who had separate allocations for account balances at transition and future deposits. In short, the account balances at transition were transferred from a money market (all of it) to the new portfolio mix (within the last few months; July, Aug and Sept). Needless to say that participant experienced a significant loss and the recordkeeper is taking the position that the advisor used their pre-designed fund change request form that said to change all participants (in fact it says all parts in modeled accounts and this person had both).

Noone is putting up the funds yet and I am wondering who should?

I am sitting on the sidelines but would appreciate any information that might be helpful.

Thank you

[Guest Karenm]

I have a situation where the client's advisor changed the lifestyle portfolios (as agreed by Plan fiduciaries); they sent the change to recordkeeper who applied the changes to all participants, across the board, even participants who had separate allocations for account balances at transition and future deposits. In short, the account balances at transition were transferred from a money market (all of it) to the new portfolio mix (within the last few months; July, Aug and Sept). Needless to say that participant experienced a significant loss and the recordkeeper is taking the position that the advisor used their pre-designed fund change request form that said to change all participants (in fact it says all parts in modeled accounts and this person had both).

Noone is putting up the funds yet and I am wondering who should?

I am sitting on the sidelines but would appreciate any information that might be helpful.

Thank you