Stocks purchased in 403(b)(7) account. How is this corrected?

[Guest AFRICA6796]

From my understanding of the 403(B) regulations state that investments are limited to mutual funds and regulated investment companies. However, one of our clients who was unaware of this rule purchased stocks, AOL etc. in his 403(B)(7) account. How can this be corrected? Does it disqualify the account? I the customer liquidates the stocks, does this resolve the issue.?