The previously issued proposed regulations issued in July 2007 regarding trust investment advice costs have been withdrawn and new proposed regulations have been issued. 

We’ve seen much debate over this issue in the last couple of years. 

In summary, to the extent that a portion of the investment advisory fee exceeds the fee generally charged to an individual investor and that excess is attributable to an “unusual investment objective”, the excess is not subject to the 2% floor.

The newly proposed regulations go on to provide guidance on whether a cost would “commonly or customarily” be incurred in the trust’s administration. 

(These are only proposed regulations, Final regulations could be different.)