Virginia Administrative Code
Title 10 - FINANCE AND FINANCIAL INSTITUTIONS
Agency 5 - STATE CORPORATION COMMISSION
Chapter 22 - TRUST COMPANY REGULATIONS
Section 10VAC5-22-130 - Referral of securities transactions
Current through Register Vol. 41, No. 3, September 23, 2024
An affiliated trust company may not direct to an affiliated broker-dealer the compensation-producing securities transactions of a trust account, unless:
1. Such action is authorized by the account settlor, the beneficiaries, or a court (depending on the circumstances) by specific written consent or authorization obtained after disclosure of the relationship and the terms of the arrangement;
2. Use of the affiliated broker-dealer is in the best interest of the account;
3. In the case of employee benefit trusts, a reasoned opinion of counsel is obtained to the effect that the proposed use does not violate the Employee Retirement Income Security Act of 1974 ( 29 USC § 1001 et seq.); and
4. The trust company has established adequate safeguards against potential abuses (e.g., "churning").
Statutory Authority
§ 6.2-1034 of the Code of Virginia.
