SB 984 - This act modifies provisions of the Missouri Family Trust Company Act. FAMILY MEMBERS (Section 362.1015) The act expands the types of entities that can be served by a family trust company to include an irrevocable trust of which one or more family members are the only permissible distributees. REGISTRATION OF FAMILY TRUST COMPANIES (Section 362.1030) Under current law, any family trust company that is not a foreign family trust company is required to file an organizational statement. This act repeals that requirement and instead requires a family trust company to pay a one-time $5,000 filing fee, file an initial registration with the Secretary of State, and file an application for a certificate of authority. The act additionally requires foreign family trust companies to pay a one-time $5,000 filing fee to the Secretary of State. AUTHORITY TO MANAGE A FAMILY TRUST COMPANY (Section 362.1037) Current law provides that exclusive authority to manage a family trust company may be vested in a limited liability company if the board of directors or managers consists of three directors or managers. This act modifies that provision by allowing exclusive authority to manage a family trust company to be vested in a limited liability company if the board of directors or managers consists of at least three directors or managers. ORGANIZATIONAL INSTRUMENT (Sections 362.1015 and 362.1040) The act modifies various provisions affecting organizational instruments filed by family trust companies. An organizational instrument of a family trust company must state that the purpose for which the company is formed is to engage in any and all activities permitted under the Missouri Family Trust Company Act. Additionally, the requirement that certain relatives be designated in the organizational instrument is repealed. Such relatives are instead required to be designated in the initial and annual registration reports filed by the family trust company. Furthermore, a provision is repealed prohibiting a family trust company from having more than one designated relative. PURCHASES MADE BY FAMILY TRUST COMPANIES WHILE ACTING AS A FIDUCIARY (Section 362.1070) The act provides that, among other criteria, a family trust company cannot, while acting as a fiduciary, make certain purchases directly from underwriters, broker-dealers, or in the secondary market unless the company discloses its intent to do so in writing to all family members for whom the investment is to be made. Furthermore, the act modifies provisions governing conflicts of interest in the course of purchasing bonds or securities when the family member served by the family trust company is a trust. A family trust company is prohibited, while acting as a fiduciary, from purchasing a bond or security issued by the family trust company, its parent, or a subsidiary company of either unless the purchase is for a fair price in compliance with the Missouri Prudent Investor Act and the family trust company is expressly authorized to do so by: · A court order; · The terms of the instrument, judgment, decree, or order establishing the fiduciary relationship; or · If the fiduciary relationship was established by a trust instrument, written consent of the settlor, or of every adult qualified beneficiary, of the trust created under that instrument for which such purchase is made. This act is substantially similar to provisions in the truly agreed to HCS/SB 599 (2020) and HCS/HB 2461 (2020). SCOTT SVAGERA