Section 2682.9 - Ownership of Securities Held in Trust(a) Beneficial ownership of a security shall include: (1) the ownership of securities as a trustee where either the trustee or member of the trustee's immediate family have a vested interest in the income or corpus of the trust.(2) the ownership of a vested beneficial interest in trust, and(3) 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 all the beneficiaries.(b) Except as provided in paragraph (c) hereof, beneficial ownership of securities solely as a settlor or beneficiary of a trust shall be exempt from the provisions of Section 1104.3 where less than twenty percent in market value of the securities having a readily ascertainable market value by such trust, determined as of the end of the preceding fiscal year of the trust, consists of equity securities with respect to which reports would otherwise be required. Exemption is likewise accorded from Section 1104.3 with respect to any obligation which would otherwise be imposed solely by reason of ownership as settlor or beneficiary of securities held in trust, where the ownership, acquisition, or disposition of such securities by the trust is made without prior approval by the settlor or beneficiary. No exemption pursuant to this subsection shall, however, 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 the securities otherwise subject to the reporting requirements of Section 1104.2.(c) In the event that 10 percent of any class of any equity security of an insurer is held in trust, that trust and the trustees thereof as such shall be deemed a person required to file the reports required by Section 1104.2, and on the forms prescribed by Section 2682.3 hereof, and transactions therein shall be subject to Section 1104.3.(d) The forms of statements prescribed by Section 2682.3 hereof do not require that more than one report be filed to report any holdings or with respect to any transaction in securities held by a trust, regardless of the number of officers, directors or ten percent stockholders who are either trustees, settlors, or beneficiaries of a trust, provided that the report filed shall disclose the names of all trustees, settlors and beneficiaries who are officers, directors or 10 percent stockholders. A person having an interest only as a beneficiary of a trust shall not be required to file any such report so long as that person relies in good faith upon an understanding that the trustee of such trust will file whatever reports might otherwise be required of such beneficiary.(e) As used in this section the "immediate family" of a trustee means: (1) a son or daughter of the trustee, or a descendant of either.(2) a stepson or stepdaughter of the trustee.(3) the father or mother of the trustee, or an ancestor or either,(4) a stepfather or stepmother of the trustee.(5) a spouse of the trustee. For the purpose of determining whether any of the foregoing relations exists, a legally adopted child of a person shall be considered a child of such person by blood.
(f) In determining, for the purposes of the statements prescribed by Section 2682.3 hereof, whether a person is the beneficial owner, directly or indirectly, of more than 10 percent of any class of any equity security, the interest of such person in the remainder of a trust shall be excluded from the computation.(g) No person shall be subject to Section 1104.3, whether or not that person is otherwise subject to the reporting requirements of Section 1104.2, with respect to that person's indirect interest in portfolio securities held by: (1) a pension or retirement plan holding securities of an insurer whose employees generally are the beneficiaries of the plan,(2) a business trust with over 25 beneficiaries.(h) Nothing in this section shall be deemed to impose any duties or liabilities with respect to any transaction or holding prior to its effective date.Cal. Code Regs. Tit. 10, § 2682.9
1. Change without regulatory effect amending subsections (a)(1), (d) and (g) filed 7-14-2021 pursuant to section 100, title 1, California Code of Regulations (Register 2021, No. 29). Filing deadline specified in Government Code section 11349.3(a) extended 60 calendar days pursuant to Executive Order N-40-20.1. Change without regulatory effect amending subsections (a)(1), (d) and (g) filed 7-14-2021 pursuant to section 100, title 1, California Code of Regulations (Register 2021, No. 29). Filing deadline specified in Government Code section 11349.3(a) extended 60 calendar days pursuant to Executive Order N-40-20.