Page:United States Statutes at Large Volume 103 Part 2.djvu/723

 PUBLIC LAW 101-194—NOV. 30, 1989 103 STAT. 1733 "(vi) except for communications which solely consist of requests for distributions of cash or other unspecified assets of the trust, there shall be no direct or indirect communica- tion between the trustee and an interested party with respect to the trust unless such communication is in writing and unless it relates only (I) to the general financial in- terest and needs of the interested party (including, but not limited to, an interest in maximizing income or long-term capital gain), (II) to the notification of the trustee of a law or regulation subsequently applicable to the reporting individual which prohibits the interested party from hold- ing an asset, which notification directs that the asset not be held by the trust, or (III) to directions to the trustee to sell all of an asset initially placed in the trust by an interested party which in the determination of the reporting individ- ual creates a conflict of interest or the appearance thereof due to the subsequent assumption of duties by the reporting individual (but nothing herein shall require any such direc- tion); and "(vii) the interested parties shall make no effort to obtain information with respect to the holdings of the trust, including obtaining a copy of any trust tax return filed or any information relating thereto except as otherwise pro- vided in this subsection. "(D) The proposed trust instrument and the proposed trustee is approved by the reporting individual's supervising ethics office. "(E) For purposes of this subsection, 'interested party' means a reporting individual, his spouse, and any minor or dependent child; 'broker' has the meaning set forth in section 3(a)(4) of the Securities and Exchange Act of 1934 (15 U.S.C. 78c(a)(4)); and 'investment adviser' includes any investment adviser who, as determined under regulations prescribed by the supervising ethics office, is generally involved in his role as such an adviser in the management or control of trusts. "(F) Any trust qualified by a supervising ethics office before the effective date of this section shall continue to be governed by the law and regulations in effect immediately before such effective date. "(4)(A) An asset placed in a trust by an interested party shall be considered a financial interest of the reporting individual, for the purposes of any applicable conflict of interest statutes, regulations, or rules of the Federed Government (including section 208 of title 18, United States C!ode), until such time as the reporting individual is notified by the trustee that such asset has been disposed of, or has a value of less than $1,000, "(B)(i) The provisions of subparagraph (A) shall not apply with respect to a trust created for the benefit of a reporting individual, or the spouse, dependent child, or minor child of such a person, if the supervising ethics office for such reporting individual finds that— "(I) the assets placed in the trust consist of a well- diversified portfolio of readily marketable securities; "(II) none of the assets consist of securities of entities having substantial activities in the area of the reporting individual's primary area of responsibility; "(III) the trust instrument prohibits the trustee, notwith- standing the provisions of paragraphs (SXCXiii) and (iv) of

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