26-44.1 - Investment in mutual fund affiliated with fiduciary. - Virginia Statutes

§ 26-44.1. Investment in mutual fund affiliated with fiduciary.

Unless prohibited or otherwise limited by the instrument under which afiduciary, including one of an agency account, is acting, the fiduciary mayinvest in a mutual company, investment trust, or investment company,sponsored, advised, or sold by it or an affiliate, if such investment isotherwise appropriate as an investment. In such case, the fiduciary shallnot take commission as fiduciary to the extent it or its affiliates receivecompensation for services relating to advice or services to such mutual fund,investment trust, or investment company, unless (i) otherwise expresslyagreed in writing by the creator of the trust or affected beneficiary or (ii)the fiduciary discloses by statement, prospectus or otherwise, to all currentincome beneficiaries of an account the rate, formula or other method by whichcompensation, received or to be received by the fiduciary or affiliate ordivision of the fiduciary for such advice and services, is determined. Insuch case, the compensation for such advice and services shall not exceed thecustomary or prevailing amount that is charged by a fiduciary, or itsaffiliate or division, for providing comparable advice and services for thebenefit of nonfiduciary accounts.

(1990, c. 66; 1992, c. 684.)