Download as PDF
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.
Disclaimer: These codes may not be the most recent version. Kentucky may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
