Simple ERISA 404(b) Question

[Guest cphcs]

I know this is a simple question, but I'm trying to confirm something regarding ERISA 404(b).

If the stock of a foreign corporation is traded on a U.S. stock exchange, such as NYSE, and thus subject to U.S. securities laws, is that stock considered to be subject to the jurisdiction of the district courts of the United States?

[QDROphile]

Are you asking the right question? Assume the stock is represented by a certificate (the ownership document). If the stock is purchased on the NYSE and then the certificate is transported out of the United States, the stock is not within the jurisdiction of the U.S. federal courts. The NYSE is just a marketplace.

[Guest cphcs]

Perhaps I'm not. The situation (which I presume is very common) is that a small plan with an individual trustee uses an investment advisor to manage plan investments - in this case, not participant directed. The advisor is not with Fidelity (for example), but uses Fidelity as the custodian of the assets. The advisor acquires NYSE-traded stock of a foreign corporation. Presuming the advisor and Fidelity are domestic entities, does it not matter for 404(b) puproses that the stock is of a foreign corporation?

[QDROphile]

The location of the corporation is not important for purposes of the rule. The location of Fidelity and where and how Fidelity maintains its records is important.