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286.3-272 Investment of fiduciary assets in company or trust associated with
investing institution -- Fee.
(1)
(2)
(3)
(4)
Notwithstanding any other law, a bank empowered to act as a fiduciary or a
trust company, to the extent that it exercises investment discretion as a
fiduciary, custodian, managing agent, or otherwise with respect to the
investment and reinvestment of assets that it holds in a fiduciary capacity, may
invest and reinvest the fiduciary assets in an investment company or
investment trust established, owned, or controlled by the bank or trust
company or an affiliate of the bank or trust company.
The fact that the bank or trust company, or any affiliate of the bank or trust
company, is providing services to the investment company or trust as
investment advisor, sponsor, distributor, custodian, transfer agent, registrar, or
otherwise, and receiving reasonable remuneration for the services, does not
preclude the bank or trust company from investing in the investment company
or trust.
The bank or trust company making an investment of fiduciary assets in the
investment company or investment trust may charge a reasonable fee for
investment advisory, brokerage, transfer agency, register, management, or
other similar services provided to the investment company. The fee may be in
addition to the compensation which the bank or trust company is otherwise
entitled to receive from the fiduciary account provided that the fee is disclosed
at least annually, by prospectus, account statement, or any other written
means to all persons entitled to receive statements of account activity.
As used in subsection (1) of this section, "affiliate of the bank or trust company"
means any bank, trust, or other entity that controls, is controlled by, or is under
common control with the bank, trust company, or other entity.
Effective:July 15, 1996
History: Created 1996 Ky. Acts ch. 338, sec. 4, effective July 15, 1996.
Formerly codified as KRS 287.272.
Legislative Research Commission Note (7/12/2006). In accordance with 2006
Ky. Acts ch. 247, secs. 38 and 39, this statute has been renumbered as a
section of the Kentucky Financial Services Code, KRS Chapter 286.
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