Utah Admin. Code R590-68-12 - Ownership of Securities Held in Trust

(1)

(a) "Immediate family of a trustee," as used in this section, means:

(i) a son or daughter of the trustee, or a descendant of either;

(ii) a stepson or stepdaughter of the trustee;

(iii) a father or mother of the trustee, or an ancestor of either;

(iv) a stepfather or stepmother of the trustee; and

(v) a spouse of the trustee.

(b) When determining a relation under Subsection (5)(a), a legally adopted child of a person is a child of the person by blood.

(2) Beneficial ownership of a security under Subsection 31A-5-303(1) includes:

(a) the ownership of securities as a trustee where either the trustee or a member of the trustee's immediate family has a vested interest in the income or corpus of the trust;

(b) the ownership of a vested beneficial interest in a trust; and

(c) the ownership of securities as a settlor of a trust in which the settlor has the power to revoke the trust without obtaining the consent of the beneficiaries.

(3)

(a) Except as provided in Subsection (4), beneficial ownership of securities solely as a settlor or beneficiary of a trust are exempt from Section 31A-5-303 where less than 20% in market value of the securities having a readily ascertainable market value held by the trust, determined as of the end of the preceding fiscal year of the trust, consists of equity securities where reports would otherwise be required.

(b) Section 31A-5-303 exempts an obligation that is imposed solely by reason of ownership as settlor or beneficiary of securities held in trust, where the ownership, acquisition, or disposition of securities by the trust is made without prior approval by the settlor or beneficiary.

(c) An exemption under this Subsection (3) may not be acquired or lost solely as a result of changes in the value of the trust assets during any fiscal year or during any time when there is no transaction by the trust in securities otherwise subject to the reporting requirements of Subsection 31A-5-303(1).

(4) If 10% of a class of an equity security of an insurer is held in a trust, that trust and the trustees shall file the reports specified in Section 31A-5-303.

(5)

(a) Only one report is required to report any holdings or with respect to any transaction in securities held by a trust, regardless of the number of officers, directors, or 10% stockholders who are either trustees, settlors, or beneficiaries of a trust, provided that the report filed discloses the names of trustees, settlors, and beneficiaries who are officers, directors, or 10% stockholders.

(b) A person having an interest only as a beneficiary of a trust is not required to file a report if the filer relies in good faith upon an understanding that the trustee of a trust will file the required reports of the beneficiary.

(6) To determine, for the purposes of Subsection 31A-5-303(1), whether a person is the beneficial owner, directly or indirectly, of more than 10% of any class of any equity security, the interest of a person in the remainder of a trust is excluded from the computation.

(7) A report is not required by any person, whether subject to the requirement of filing reports under Section 31A-5-303, regarding the person's indirect interest in portfolio securities held by:

(a) a pension or retirement plan holding securities of an insurer whose employees generally are the beneficiaries of the plan; and

(b) a business trust with over 25 beneficiaries.

Notes

Utah Admin. Code R590-68-12

Adopted by Utah State Bulletin Number 2023-12, effective 6/9/2023