ERISA Regulations

Non Fiduciary ERISA Retirement Accounts Permitted Transactions:

Depending on the financial advisory firm the company is associated with, the following investments can be permitted.

• agency and agency cross
• principal (but only if the terms are at least as favorable to the plan as an arm's-length transaction)
• syndicate issues / underwritings (provided no syndicate member is a fiduciary with respect to the plan)
• market maker
• options but only the writing of fully covered calls and closing transactions for those positions. Covered call writing will only be permitted if the trust document authorizes it. Margin may be used for covered call writing if trust documents so provide and plan satisfies credit criteria and is approved by the financial institution's Compliance Department.
• futures provided that the trust or plan document expressly permits such trading and the plan meets credit criteria. Futures trading is prohibited in IRA accounts except for certain fully disclosed investment strategies.
• margin trading but only for employee benefit plans provided the:
• plan's trust documents expressly permit such transactions (whose fiduciary will use the margin loan proceeds will be used solely for securities transactions in the account);
• Compliance approval has been obtained; and
• the plan, as a separate and distinct entity, meets credit criteria.
• Repurchase agreements under the Ready Repo program but not for IRA accounts.