13-63-18. No direction of investments--Limited options permitted--Financial institution obligation.

A contributor to, account owner of, or designated beneficiary of, any account may not, directly or indirectly direct the investment of any contributions to an account or the earnings from the account, except to the extent permitted under section 529 of the Internal Revenue Code. A financial institution may not permit a contributor, account owner, or designated beneficiary to act with respect to an account in a manner that constitutes investment direction, except to the extent permitted under section 529(b)(4) of the Internal Revenue Code.

The council, as trustee, may offer participants a choice of several investment options, some of which may require investment counseling prior to participation. Any investment vehicle offered by the council must be in accordance with policies of the council adopted pursuant to this chapter and must be consistent with the investments of a prudent person with similar objectives and must further be separate from, and not commingled with, other investment programs of the council.

Source: SL 2001, ch 97, § 18; SL 2002, ch 94, § 2; SL 2022, ch 49, § 7.