ERISA Rules

If there is a financial institution or advisor who is a fiduciary with respect to the 401k retirement plan, usually only agency transactions will be permitted in that account. No commissions are received from such agency transactions unless without certain written disclosures and reports to the plan. Moreover, the plan's trustees must give written permission.

Financial institution may also effect (i.e., clear and process), but may not execute, agency transactions in exchange listed securities on an exchange on behalf of employee benefit plans for which the financial institution exercises discretion. Execution of such transactions must be handled by independent floor brokers and the plan must receive a report of transaction costs clearly indicating the amount of commissions retained by the financial institution and the amount of commissions paid to other brokers. All such documentation and reports must be reviewed and approved by the Compliance Department.