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Bonding and Directed Trustees/Custodians


KJohnson

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Posted

If a Plan uses a bank as a directed trustee or custodian, my read has always been that although the bank does not have to be bonded (presuming it meets the other requirements of the ERISA 412 regs) the person or persons who give "direction" regarding investments must be bonded. Does anyone have a different read?

Guest pdahlen
Posted

Every fiduciary must be bonded. That is: anyone who has any control over the plan assets, handles funds or other property of the plan.

Guest pdahlen
Posted

Sorry, didn't mean to mislead. I agree with KJohnson. Bank trustee does not require bonding but all others handling funds (not employed by the bank) do.

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