TREATMENT OF BANK COMMON TRUST FUNDS.

SEC. 221. TREATMENT OF BANK COMMON TRUST FUNDS. (a) Securities Act of 1933.—Section 3(a)(2) of the Securities Act of 1933 (15 U.S.C. 77c(a)(2)) is amended by striking “or any interest or participation in any common trust fund or similar fund maintained by a bank exclusively for the collective investment and reinvestment of assets contributed thereto by such bank in its capacity as trustee, executor, administrator, or guardian” and inserting “or any interest or participation in any common trust fund or similar fund that is excluded from the definition of the term ‘investment company’ under section 3(c)(3) of the Investment Company Act of 1940”. (b) Securities Exchange Act of 1934.—Section 3(a)(12)(A)(iii) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(12)(A)(iii)) is amended to read as follows: “(iii) any interest or participation in any common trust fund or similar fund that is excluded from the definition of the term ‘investment company’ under section 3(c)(3) of the Investment Company Act of 1940;”. (c) Investment Company Act of 1940.—Section 3(c)(3) of the Investment Company Act of 1940 (15 U.S.C. 80a–3(c)(3)) is amended by inserting before the period the following: “, if— “(A) such fund is employed by the bank solely as an aid to the administration of trusts, estates, or other accounts created and maintained for a fiduciary purpose; “(B) except in connection with the ordinary advertising of the bank’s fiduciary services, interests in such fund are not— “(i) advertised; or “(ii) offered for sale to the general public; and “(C) fees and expenses charged by such fund are not in contravention of fiduciary principles established under applicable Federal or State law”.