A mutual fund is not issued like a bond or a CD. Each mutual fund is a separate legal entity like a trust that is independent of the sponsoring institution that markets and provides services for it. Assets of a mutual fund are not property of this sponsoring institution and are not involved in any legal claims against the sponsoring institution such as bankruptcy.

In the event that the sponsoring institution of a mutual fund goes bankrupt, the fund board of directors will hire some other firm to provide those services.

 Another Rick
 

Thank you for the response. It makes my Labor Day much brighter.

I do not want to be pushy, but are you aware of where I can find rules and regulations regarding it. I was attending a meeting with two gentelmen representing Wachovia Securities who were setting/correcting our retirement plan. When I stated that we could lose our retirement account in case of institutions going under, they didn't question my assertion. May be they misunderstood me. May be they agree with me.

Greg.

Wheels with wheels!

You should also note that your employer's retirement plan(s) are separate legal entities from your employer and from whomever manages them. If you want to investigate the laws regarding such retirement plans, I suggest you start with this page on the Department of Labor web site:http://www.dol.gov/dol/topic/retirement/index.htm 

Another Rick 

Here is your break down. As already stated all brokers are covered under SIPC. FDIC would only apply if you have a bank product like a cd and certain money markets.

1) SIPC, covers 500k cash and secruties, max 100k cash.

2) The assets in the account are yours, since your talking about a retirment account they would not be allowed to lend out stock against it. So unless the firm is engaged in outright fraud your assets will just be moved over to another broker capabale of holding the funds. Like FDIC, SIPC only covers the banks/brokers failure. So any investment in that companies stock or funds that lose value ralted to the underlying companies performance are not covered.

Your brokers are required to have on hand and provide brochures/info on SIPC coverage on demand. Next time you talk with them I would request information.. that should at least get you something in the mail.

BGF

Sure, just don't go owing much of your Co.'s Stock in your #401k..Like those in the Airline Industry, Enron.Bear Sterns and the Steel Industry & many other Co.'s Employees found out the hard way ( Lost 50-75% of their Pensions/#401ks,etc),not to mention Teacher or other Unions pension plans lost alot as well..

Risks of Investing 401k Retirement Plan Savings in Company Stock and how to Minimize that Risk

 and over 68% of Co.'s UnderInsure their #401k's with *** insurance..

Not to mention, why do most Co.'s only offer Certain Funds and Not Index or Low cost Funds? or the top 20% ranking -No-Load Funds for the past 10 yrs?

AOL Search results for "Risks in #401k's"

Hi, two gentlemen from Wachovia Securities?  Oh, oh - do you live in New Jersey?

Angel_1