transfer to new investment advisor

[Guest erisaauditor]

Hi,

Question: Employer who is the trustee of the 401(k) plan wishes to transfer the plans investments to a new adviser. Are there any standard formalized procedures/laws for notifying the old investment advisor and a legal time from for the old advisor to complete the transfer? Limit on fees for leaving?

Thanks.

erisaauditor

[Bird]

That depends on a lot of things, ultimately the agreement in place with the old adviser. Are the old investments on a self-directed platform? 30 days seems like a standard notice for that kind of scenario. If the old investments are held in a single brokerage account, or self-directed in FBO brokerage accounts, the new adviser will often have the trustee sign a form to ACAT the money/securities directly to the new brokerage account(s) in a day or two.

[K2retire]

There are several service providers (primarily connected to payroll companies) that require 60 days notice to terminate their agreement.

[mbozek]

Hi,

Question: Employer who is the trustee of the 401(k) plan wishes to transfer the plans investments to a new adviser. Are there any standard formalized procedures/laws for notifying the old investment advisor and a legal time from for the old advisor to complete the transfer? Limit on fees for leaving? One question is whether the new advisor has all of the necessary licenses for the investments held by the plan.

Thanks.

erisaauditor

The answers to your questions will be in the agreement with the current investment advisor. Are you substituting one advisor to the plan with another while the Plan assets will remain in the trust? One question is whether the new advisor has obtained all of the necessary licenses for the assets held in the plan.

[Guest erisaauditor]

Is there such thing as a "letter of Transfer"? Where might I find examples?

Thank you very much for all of your comments / suggestions. This site has been very helpful to me.