The US Treasury Department announced new rules on Thursday, clarifying the investment requirements for children's “Trump accounts” established by last year's tax reform bill. Account funds can only be invested in equity funds that track indices and are heavily invested in US companies. The maximum fund investment rate is 0.1% of the account's assets. The new regulations prohibit ESG-themed funds from entering the market and identify them as sector-type funds that are not permitted by regulations. Account service fees charged by custodians are not subject to the upper rate limit. The Ministry of Finance is seeking public comments to evaluate whether to limit or ban such fees. At the same time, the government solicited plans to explore ways to allow value-added stock donations to be transferred to accounts.

Zhitongcaijing · 1d ago
The US Treasury Department announced new rules on Thursday, clarifying the investment requirements for children's “Trump accounts” established by last year's tax reform bill. Account funds can only be invested in equity funds that track indices and are heavily invested in US companies. The maximum fund investment rate is 0.1% of the account's assets. The new regulations prohibit ESG-themed funds from entering the market and identify them as sector-type funds that are not permitted by regulations. Account service fees charged by custodians are not subject to the upper rate limit. The Ministry of Finance is seeking public comments to evaluate whether to limit or ban such fees. At the same time, the government solicited plans to explore ways to allow value-added stock donations to be transferred to accounts.