D.C. Mun. Regs. tit. 26, r. 26-A1408
Beneficial ownership of a security for the purpose of Section 3(a) shall include the following:
Except as provided in § 1408.1(c), beneficial ownership of securities solely as a settlor or beneficiary of a trust shall be exempt from the provisions of Section 3(a) where less than twenty per cent (20%) 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 with respect to which reports shall be required.
Exemption shall be accorded from Section 3(a) with respect to any obligation which shall be imposed solely by reason of ownership as settlor or beneficiary of securities held in trust, and where the ownership, acquisition, or disposition of the securities by the trust is made without prior approval by the settlor or beneficiary.
No exemption pursuant to this section shall be acquired or lost solely as a result of changes in the value of the trust assets during any fiscal year or during any time when there is no transaction by the trust in the securities otherwise subject to the reporting requirements of Section 3(a).
In the event that ten per cent (10%) of any class of any equity security of an insurer is held in a trust, that trust and the trustees shall be considered a person required to file the reports specified in Section 3(a) of the Act.
Not more than one (1) report need be filed to report any holdings or with respect to any transaction in securities held by a trust, regardless of the number of officers, directors, or ten per cent (10%) stockholders who are either trustees, settlors, or beneficiaries of a trust, provided that the report filed shall disclose the names of all trustees, settlors and beneficiaries who are officers, directors or ten per cent (10%) stockholders.
Any person having an interest only as a beneficiary of a trust shall not be required to file a report so long as he or she relies in good faith upon an understanding that the trustee of the trust shall file whatever reports is required of the beneficiary.
As used in this section the "immediate family" of a trustee shall have the following meaning:
For the purpose of determining whether any of the foregoing relations exists, a legally adopted child of a person shall be considered a child of such person by blood.
In determining whether a person is the beneficial owner, directly or indirectly of more than ten per cent (10%) of any class of any equity security, the interest of the person in the remainder of a trust shall be excluded from the computation.
No report shall be required by any person, whether or not otherwise subject to the requirement of filing reports under Section 3(a), with respect to his or her indirect interest in portfolio securities held by the following:
Nothing in this section shall be deemed to impose any duties or liabilities with respect to reporting any transaction or holding prior to its effective date.
D.C. Mun. Regs. tit. 26, r. 26-A1408