836-024-0145 Ownership of Securities Held in Trust (1) Beneficial ownership of a security for the purpose of ORS 732.430 includes any of the following: (a) Ownership of securities as a trustee when either the trustee or members of the immediate family of the trustee have a vested interest in the income or corpus of the trust; (b) Ownership of a vested beneficial interest in a trust; and (c) 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. (2) Except as provided in section (4) of this rule, the following are exempt from the filing requirement in ORS 732.430: (a) A person who has beneficial ownership of securities solely as a settlor or beneficiary of a trust, when less than 20 percent in market value of the securities having a readily ascertainable market value held by the trust, determined as of the end of the preceding fiscal year of the trust, consists of equity securities for which reports would otherwise be required. (b) A person who has an obligation that would otherwise be imposed solely by reason of ownership as settlor or beneficiary of securities held in trust, when the ownership, acquisition or disposition of the securities by the trust is made without prior approval by the settlor or beneficiary. (3) An exemption under section (2) of this rule is not acquired or lost solely because of changes in the value of the trust assets during a fiscal year or during any time that there is no transaction by the trust in the securities otherwise subject to the reporting requirements of ORS 732.430. (4) If ten percent of a class of an equity security of an insurer is held in trust, the trust and its trustee are considered to be a person that must file reports required by ORS 732.430. (5) A trust is not required to file more than one report of holdings or of a transaction in securities held by a trust, regardless of the number of officers, directors or 10 percent stockholders that are trustees, settlors or beneficiaries of a trust, if the filed report discloses the name of all trustees, settlers and beneficiaries who are officers, directors or ten percent stockholders. A person having an interest only as a beneficiary of a trust is not required to file a report as long as the person relies in good faith upon an understanding that the trustee of the trust will file whatever reports might otherwise be required of the beneficiary. (6) As used in this rule, the “immediate family” of a trustee means: (a) A son or daughter of the trustee, or a descendant of either; (b) A stepson or stepdaughter of the trustee; (c) The father or mother of the trustee, or an ancestor of either; (d) A stepfather or stepmother of the trustee; or (e) A spouse of the trustee. (7) For the purpose of determining whether any of the relations described in section (6) of this rule exists, a legally adopted child of a person is considered to be a child of the person by blood. (8) For the purpose of determining under ORS 732.430 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 that person in the remainder of a trust shall be excluded from the computation. (9) A person is not required to file a report under ORS 732.430 with respect to the person’s indirect interest in portfolio securities held by either of the following, regardless of whether the person is otherwise subject to the requirement of filing reports under ORS 732.430: (a) A pension or retirement plan holding securities of an insurer whose employees generally are the beneficiaries of the plan. (b) A business trust with more than 25 beneficiaries. (10) This rule does not impose any duties or liabilities relating to the reporting of a transaction or holding prior to the effective date of the transaction or holding. Statutory/Other Authority: ORS 731.244, 732.420, 732.430, 732.435, 732.445, 732.450 & 732.455 Statutes/Other Implemented: ORS 732.420 - 732.455 History: ID 16-2006, f. & cert. ef. 8-7-06