Session Laws

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:

Section 3 of chapter 167G of the General Laws is hereby amended by striking out paragraph 11, as appearing in the 1990 Official Edition, and inserting in place thereof the following paragraph:-

11. Any association or corporation authorized to do a banking business and to exercise trust powers in the commonwealth while acting as a fiduciary is authorized, in the absence of an express provision to the contrary in the instrument, judgment, decree or order creating a trust or other fiduciary relationship, to purchase for the fiduciary estate, directly from underwriters or distributors or in the secondary market, bonds or other securities which are underwritten or distributed by such association or corporation or an affiliate thereof or by any syndicate which includes such association or corporation or an affiliate thereof and securities of any investment company for which such association or corporation or any affiliate thereof acts as adviser, distributor, transfer agent, registrar, sponsor, manager, shareholder servicing agent or custodian; provided, however, that (1) nothing in this section shall affect the degree of prudence which is required of fiduciaries generally under the common law of the commonwealth and (2) any such bonds or securities so purchased shall have sufficient liquidity and quality to satisfy the principles of fiduciary investment; provided, further, that either (1) the investment advisory fees, commissions or similar fees to which the trustee or fiduciary is entitled to receive as trustee or fiduciary shall be reduced by the amount of any investment advisory fees, commissions or similar fees paid to the trustee or fiduciary by the investment company or investment trust or (2) the investment advisory fees, commissions or similar fees paid to the trustee or fiduciary by the investment company or investment trust shall be received in lieu of any investment advisory fees, commissions or similar fees that the trustee or fiduciary would otherwise be entitled to receive for the investment management of the trust or fiduciary account. Any such association or corporation purchasing bonds or securities pursuant to this paragraph shall, in any written communication or account statement reflecting such purchase, disclose the fact that it or an affiliate may have an interest in the underwriting or distribution of such bonds or securities and any capacities in which it or an affiliate acts for the issuer of such securities.