Investment Advisors bankruptcy impacting custodial accounts

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Our organization has our invested funds diversified among portfolios managed by Investment Advisor firms. The funds in each of these investment advisor accounts are all held by one custodial bank. If an investment advisor experiences Y2K business disruption, or, worst case scenario ceases operations, what impact will this have on the funds themselves, the custodial bank, or, our organization?

-- Christine Einhorn (Christine_einhorn@hmsa.com), March 03, 1999

Answers

Christine, this is a weighty question. I wrote a detailed response and then deleted it because it really deserves personal attention from an expert licensed in whatever section of the country you're in. If you're just seeking information out of curiosity, then I'm sorry that I'm uncomfortable dealing with it in this format. If you're seeking substantive information for decision making, you really need to talk to an expert. Let me repeat that I believe this is a very important issue that many people should consider.

By the way, you don't have any relatives that write for Barron's do you?

-- Puddintame (dit@dot.com), March 03, 1999.


Christine, you also need to ask about ramifications of the "custodial bank" being non-compliant, disrupted or corrupted.

-- Puddintame (dit@dot.com), March 03, 1999.

heavent got a clue

-- whome (wishiknew@doiknow.frag), March 03, 1999.

Thank you for your response. I am, in fact, seeking substantive information for decision making. I am a Y2K consultant, at this time contracted to support a Y2K Business Partner Project for a large insurance company. Because I do not consider myself qualified to make contingency planning recommendations to the finance area, and yet feel a responsibility to address this issue, I posed the issue as a potential Y2K scenario on a public bulletin board for the purpose of an initial self education. If you are feeling so compelled, please forward your original response personally to my email address. It will be held in confidentiality and with full understanding, if you wish, that it is an opinion of a non-expert on the matter.

-- Christine Einhorn (Christine_Einhorn@hmsa.com), March 03, 1999.

thank you for your response. I am, in fact, seeking substantive information for decision making. I am a Y2K consultant, at this time contracted to support a Y2K Business Partner Project for a large insurance company. Because I do not consider myself qualified to make contingency planning recommendations to the finance area, and yet feel a responsibility to address this issue, I posed the issue as a potential Y2K scenario on a public bulletin board for the purpose of an initial self education. If you are feeling so compelled, please forward your origianl response to my personal email address. It will be held in confidentiality and with full understanding, if you wish, that it is an opinion of a non-expert on the matter.

-- christine einhorn (christine_einhorn@hmsa.com), March 03, 1999.


I don't know either but I can tell you that this is a good question that most of the companies out there should be asking.

-- darla (heaven@me.com), March 04, 1999.

When in doubt, keep hard copies of all financial records. Just in case.

-- Tom Carey (tomcarey@mindspring.com), March 04, 1999.



-- investor (custodial@bank.com), March 04, 1999.

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