investment adviser

(3) Definition of qualified blind trust .— For purposes of this subsection, the term “qualified blind trust” includes any trust in which a reporting individual, the individual’s spouse, or any minor or dependent child has a beneficial interest in the principal or income, and which meets the following requirements: (A) Trustee.— (i) The trustee of the trust and any other entity designated in the trust instrument to perform fiduciary duties is a financial institution, an attorney, a certified public accountant, a broker, or an investment advisor who— (I) is independent of and not associated with any interested party so that the trustee or other person cannot be controlled or influenced in the administration of the trust by any interested party; (II) is not and has not been an employee of or affiliated with any interested party and is not a partner of, or involved in any joint venture or other investment with, any interested party; and (III) is not a relative of any interested party. (ii) Any officer or employee of a trustee or other entity who is involved in the management or control of the trust— (I) is independent of and not associated with any interested party so that such officer or employee cannot be controlled or influenced in the administration of the trust by any interested party; (II) is not a partner of, or involved in any joint venture or other investment with, any interested party; and (III) is not a relative of any interested party. (B) Transferred asset .— Any asset transferred to the trust by an interested party is free of any restriction with respect to its transfer or sale unless such restriction is expressly approved by the supervising ethics office of the reporting individual. (C) Trust instrument .— The trust instrument which establishes the trust provides that— (i) except to the extent provided in subparagraph (B) of this paragraph, the trustee in the exercise of the trustee’s authority and discretion to manage and control the assets of the trust shall not consult or notify any interested party; (ii) the trust shall not contain any asset the holding of which by an interested party is prohibited by any law or regulation; (iii) the trustee shall promptly notify the reporting individual and the reporting individual’s supervising ethics office when the holdings of any particular asset transferred to the trust by any interested party are disposed of or when the value of such holding is less than $1,000; (iv) the trust tax return shall be prepared by the trustee or the trustee’s designee, and such return and any information relating thereto (other than the trust income summarized in appropriate categories necessary to complete an interested party’s tax return) shall not be disclosed to any interested party; (v) an interested party shall not receive any report on the holdings and sources of income of the trust, except a report at the end of each calendar quarter with respect to the total cash value of the interest of the interested party in the trust or the net income or loss of the trust or any reports necessary to enable the interested party to complete an individual tax return required by law or to provide the information required by subsection (a)(1) of this section, but such report shall not identify any asset or holding; (vi) except for communications which solely consist of requests for distributions of cash or other unspecified assets of the trust, there shall be no direct or indirect communication between the trustee and an interested party with respect to the trust unless such communication is in writing and unless it relates only (I) to the general financial interest and needs of the interested party (including, but not limited to, an interest in maximizing income or long-term capital gain), (II) to the notification of the trustee of a law or regulation subsequently applicable to the reporting individual which prohibits the interested party from holding an asset, which notification directs that the asset not be held by the trust, or (III) to directions to the trustee to sell all of an asset initially placed in the trust by an interested party which in the determination of the reporting individual creates a conflict of interest or the appearance thereof due to the subsequent assumption of duties by the reporting individual (but nothing herein shall require any such direction); and (vii) the interested parties shall make no effort to obtain information with respect to the holdings of the trust, including obtaining a copy of any trust tax return filed or any information relating thereto except as otherwise provided in this subsection. (D) Approval by supervising ethics office .— The proposed trust instrument and the proposed trustee are approved by the reporting individual’s supervising ethics office. (E) Definitions .— For purposes of this subsection, “interested party” means a reporting individual, the individual’s spouse, and any minor or dependent child; “broker” has the meaning set forth in section 3(a)(4) of the Securities Exchange Act of 1934 ( 15 U.S.C. 78c(a)(4) ); and “investment adviser” includes any investment adviser who, as determined under regulations prescribed by the supervising ethics office, is generally involved in the role as such an adviser in the management or control of trusts. (F) Trust qualified before effective date of title ii of ethics reform act of 1989 .— Any trust qualified by a supervising ethics office before the effective date of title II of the Ethics Reform Act of 1989 shall continue to be governed by the law and regulations in effect immediately before such effective date.

Source

5 USC § 13104(f)(3)


Scoping language

For purposes of this subsection
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