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Asked 4/8/2010

Can my employer adopt a compliance policy that forces me to give them copies of my statements, limits the number of firms I can buy securities through to a select few, make me get approval from my supervisor and compliance before making any trades?

Can my employer adopt & enforce a personal account dealing compliance policy that forces me to give them copies of my 401k investment statements, limits the number of firms I can buy securities through to a select few both within my 401k brokerage link account as well as outside of my 401k (also includes spouses investments as well), make me get approval from my supervisor and compliance before making any trades? Disclose to them all statements of family members? This is my retirement account that I'm 100% vested in. This amounts to restricting my freedom and limiting my ability to grow my retirement account, and quite possibly it could lead to losses in the value of my account. If I want to buy shares in a company and sell them when the share price increases, I will have to wait 30 days. If some piece of critical news surfaces and my shares are losing their value I won't be able to cut my losses without waiting 30 days at which time the stock may have hit bottom. This interference does not seem legal to me? Can you let me know what the law says about the employer's ability to control the employees 401k fund to such an extent? I do not wish to comply with this policy as it seems like a violation of my rights on several levels. Thank you.

 
 
 
 
 
Answers

Answer 1/1 - Submitted 4/8/2010

No they cannot. A 401k is your property once your vested and have the right to buy securities or trade as you wish. Contact the plan administrator and see if they had a hand in drafting the new policy. If so, report them them to the banking department of your state.

 
 
 
 
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