82-8

July 1, 1982

Re: Non-Bank Custodianship of Individual Retirement Accounts and Keogh Plans

Dear Mr. ________:
This is in response to your letters of May 13, 1982 and May 26, 1982, and confirms our telephone conversation of June 23, 1982.
In conformance with your letter of May 13, 1982 and our subsequent telephone conversations, we understand ________ acts as the custodian for Individual Retirement Account and Keogh Plan programs. ________ does not make any investment decisions with respect to investors’ funds, rather, follows the instructions of each investor with regard to the various investment options offered by ________. We further understand ________ proposes to perform the same functions now carried out by ________ in the capacity of a nonbank custodian. In this regard, ________ will apply to qualify with the Internal Revenue Service to act in this capacity.
Based upon the accuracy of your representations and subject to qualification with the Internal Revenue Service, this Department presently does not consider ________’s proposal to warrant enforcement action for the conduct of a trust business. Our position is subject to change in the event of any change in your representations or the facts at hand. Also, this letter expresses only the present enforcement position of the Department and does not purport to express any legal conclusions regarding ________ proposal.
Thank you for your courtesy and cooperation in this matter.
Very truly yours,
RICHARD M. DOMINGUEZ
Superintendent of Banks
BY
WILLIAM G. THOMPSON
Counsel

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