34 Tex. Admin. Code § 7.194 - Investments
(a) The Board shall administer and invest the
assets of the Program. The Board shall serve as the trustee of the assets of
the Program.
(b) The Board may
delegate to duly appointed financial institutions or plan manager(s) authority
to act on behalf of the Board in the investment and reinvestment of all or part
of the assets of the Program and may also delegate to those financial
institutions or plan manager(s) the authority to act on behalf of the Board in
the holding, purchasing, selling, assigning, transferring, or disposing of any
or all of the securities and investments in which the funds in the ABLE account
have been invested, as well as the proceeds from the investment of those
funds.
(c) The Board may select one
or more financial institutions to serve as custodian of all or part of the
Program's assets.
(d) In the
Board's discretion, the Board may contract with one or more financial
institutions to serve as plan manager and to invest the money in ABLE
accounts.
(e) In exercising or
delegating investment powers and authority, the Board shall exercise ordinary
business care and prudence under the facts and circumstances prevailing at the
time of actions or decisions related to investment of assets of the Texas ABLE
Program. A member of the Board is not liable for any action taken or omitted
with respect to the exercise of, or delegation of, those powers and authority
if the member discharged the duties of the member's position in good faith and
with the degree of diligence, care, and skill that a prudent person acting in a
like capacity and familiar with those matters would use in the conduct of an
enterprise of a like character and with like aims.
(f) As applicable, the Board shall adopt an
investment policy statement for the Program, set the asset allocation of the
Program, select the underlying investments of the Program, and the Board shall
promptly deposit and invest contributions, excluding any excess contributions,
and any earnings as directed by the participant. No earnings or interest will
accrue to an ABLE account before the funds have been invested.
(g) For investment purposes, the Board may
pool funds, or authorize the pooling of funds, from ABLE accounts with other
funds administered by the Board. If funds from the ABLE accounts are pooled
with other funds administered by the Board, the Board shall track, monitor,
report, and record separately, all investment activity related to the ABLE
accounts, including any earnings, fees, or charges or expenses associated with
each ABLE account.
(h) A
participant may direct the investment of any contributions or any earnings on
contributions only to the extent allowed by Internal Revenue Code,
§529A.
(i) No investment,
financial, or benefits advice is offered to participants, eligible individuals,
eligible members of the family, parents, designated beneficiaries, or their
guardians or fiduciaries acting on their behalf, from the State of Texas, the
comptroller, the Board, the Texas ABLE Program, the Texas ABLE Advisory
Committee, or from their employees, vendors, or agents, nor do they assume any
responsibility for the performance of any investment option. The decision to
enroll in the Program, the selection of investment options, and the suitability
of such options is entirely the responsibility of the participant.
Notes
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