Investment Loss Notice

[Monica Barnard]

Hey Ya'll - Drs P&Q have a 401k with self-directed accounts. In 2009, they moved from Brokerage Firm to Large Insurance Carrier. SOX Notice was properly given. Brokerage firm liquidated assets on the worst trading day of the year. Losses were, of course, dependent on the investments of each participant. Investments were wire transferred to Large Insurance Carrier.

Dr. Q wants to know what legal obligation does he have as trustee to notify participants of the investment loss. I don't know of any requirement to send a notice that specifically addresses investment losses due to the movement of plan assets from one investment firm to another. Is there any need or requirement for him to do so?

Thanks for your help on this.

[Bird]

Nothing special required, and I disagree that the losses were caused by the movement from one firm to another. A snapshot on that day had the investments not been moved would have shown the same result.