A New York probate judge has dealt a potentially serious setback to banks that invest common trust fund assets in mutual funds of unaffiliated companies.

In a surprise reversal of a steady easing of restrictions on the investment of common trust assets, Onondaga County Surrogate Court Judge Peter N. Wells held that a bank can only invest the assets in outside mutual funds if it also absorbs the fund management fees.

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.