§ 26-44.1. Investment in mutual fund affiliated with fiduciary
Unless prohibited or otherwise limited by the instrument under which a fiduciary, including one of an agency account, is acting, the fiduciary may invest in a mutual company, investment trust, or investment company, sponsored, advised, or sold by it or an affiliate, if such investment is otherwise appropriate as an investment. In such case, the fiduciary shall not take commission as fiduciary to the extent it or its affiliates receive compensation for services relating to advice or services to such mutual fund, investment trust, or investment company, unless (i) otherwise expressly agreed in writing by the creator of the trust or affected beneficiary or (ii) the fiduciary discloses by statement, prospectus or otherwise, to all current income beneficiaries of an account the rate, formula or other method by which compensation, received or to be received by the fiduciary or affiliate or division of the fiduciary for such advice and services, is determined. In such case, the compensation for such advice and services shall not exceed the customary or prevailing amount that is charged by a fiduciary, or its affiliate or division, for providing comparable advice and services for the benefit of nonfiduciary accounts.
(1990, c. 66; 1992, c. 684.)
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