I was wondering if anyone else has ever run across this situation.

Client firm is sold to a big firm. During the year the big firm revised the plan documents and moved the money to a different investment platform, shortly before the close of the year. Big firm refuses to provide us with new plan documents, and information about accounts on new platform. Problem is they demand that we do an annual valuation and prepare 5500. Requests for missing data are outright denied in writing, with person actually saying that since plan moved to a new platform we have no need of that information!

Anyway, we are intending to simply do work with data held. Of course, "product" will be heavily caveated, and our file includes the numerous written requests and denials. Our written service agreement does say work is based on data submitted and the client is responsible to provide us with all data.

I find this situation too surreal. Is this something we should report to the feds? Anyone have any suggestions?

Thanks!

I would refuse to prepare the 5500 since it will certainly be wrong. I would also call my error and omissions insurance carrier to ask if there is anything they would recommend in how I fire this client. Then I would fire the client. Or maybe I would send a reply to the denial of info stating this is the same as terminating our relationship.

You can resign, but you cannot fire a client. Follow your written agreement.
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BG:

A couple of years ago we as the TPA, took over a moderately large 401(k) Plan from a large bundled service provider. It was a mid year takeover and we received the applicable "conversion file", etc.

A couple of months after the end of the plan year our client received a partially completed 5500 in the mail from the bundled service provider. It was a fully completed 5500, but partially complete in that the data only covered the first six months of the year. The cover letter noted that the 5500 was partially complete due to the conversion of the plan and the lack of data. The letter went on to say they were providing the 5500 based upon the information on file, pursuant to the service agreement in place at the beginning of the year. I thought it was very odd at the time, but as I see it now, they were doing what David mentions in his post, they were following their written service agreement.

I guess I am saying, I would proceed with the course of action that you mention at the end of your post.

Thanks for the replies.

I had gotten, in writing, a statement saying that I did not need either the plan document or data on accounts to do a valuation and 5500. I had that "confirmed", saying that we would complete the 5500 based upon data held, and that in accordance with service agreement we are not responsible for related errors or problems. I then terminated our service going forward, following completion of that 5500 and valuation requested. Making a long story short, we now have in writing that we are to not complete the 5500 and valuation! In short, problem solved, I guess!

The idea about contacting E&O Carrier is a good one to remember. Thanks!

I really found this to be an "Alice in Wonderland Scenerio". Expecting that we do a review and do a reconciliation of plan operations without data on accounts, or even the amended plan document! Just too weird. I can't determine why a firm would want that. Pehaps, something in the data or document they didn't want us to see? Anyway, it is gone so....

Having a good service agreement is oh so important.