Investments and Fiduciary Interests

I have to disclose an investment in a company if it is doing business in Ohio or holds a certificate of compliance authorizing it to do business in Ohio. Does the fact that I live in Ohio and I have an investment with a company automatically mean the company is “doing business” in Ohio?

Not necessarily. In order to check whether the company is doing business in Ohio or holds a certificate of compliance authorizing it to do business in Ohio, you should contact the corporation or the Secretary of State’s office. Advisory Opinion 2011-01.

If I have a brokerage account, and my broker makes the investments for me, what do I have to disclose?

You are required to disclose the name of any corporation incorporated in Ohio or holding a certificate of compliance to do business in Ohio in which you have investments of over $1,000 during any calendar year. Even if your broker actually makes the investments on your behalf, the investments are for your use or benefit. Therefore, you are required to disclose the individual holdings in the brokerage account. You are not required to disclose an account number or other personal identifying information. Advisory Opinion 2011-01 more fully describes how investments must be disclosed, and includes a quick reference chart.

Do I have to list the Public Employees Retirement System (PERS) as an investment?

No. PERS is a public agency, not a corporation, trust, business trust, partnership, or association that transacts business in Ohio. Therefore, you are not required to disclose a PERS investment. The same answer would apply for any other public retirement fund and to the Social Security Administration.

However, if you are receiving social security income or income from a public or private retirement fund, you would have to disclose the Social Security Administration or the retirement fund as the source of income.

Do I have to list Deferred Compensation as an investment?

Yes. You are required to disclose any mutual fund or other investment in which you have an investment through Deferred Compensation.

If I am a beneficiary or settler of a trust, do I have to disclose the trust and all of the investments held in the trust?

You are required to disclose the trust. You are also required to disclose any investments held within the trust that are over $1,000 in value. Advisory Opinion 2005-01.

If my parents or another family member set up a trust that I will inherit after they die, do I need to disclose the trust or the investments in the trust?

No, if you currently have only a future interest in a trust, meaning you cannot use the trust's money, earnings, or assets, then the trust and its assets are not for your use or benefit. In this situation, you are not required to disclose the trust or investments held in the trust. Advisory Opinion 2005-01 (footnote 1 and 3).

Do I need to disclose real property located in Ohio in which a trust, to which I’m the beneficiary, holds a fee simple or leasehold interest?

Yes. You must disclose all fee simple and leasehold interests to which you hold a beneficial interest in real property located within Ohio, except for your residence and property used primarily for personal recreation. R.C. 102.02(A)(2)(d).

I have bitcoins (or any other cryptocurrency) in a brokerage account, do I need to disclose them?

You must disclose the name of any brokerage account containing cryptocurrency if the brokerage manages over $1,000 in investments and is a “qualifying business.” A “qualifying business” means a corporation, trust, business trust, partnership, or association incorporated in or doing business in Ohio, or that holds a certificate of compliance authorizing it to do business in Ohio. To check whether the company is a “qualifying business,” you should contact the company directly or the Ohio Secretary of State’s office. Advisory Opinion 2011-01.

I own Bitcoin, Ethereum, and Tether in a wallet, how do I disclose my cryptocurrency on my financial disclosure statement?

While you are not required to disclose cryptocurrencies, including stablecoins, as investments on your financial disclosure statement, you may be required to disclose cryptocurrency brokerage accounts, cryptocurrency exchange traded products (“ETPs”), cryptocurrency exchange traded funds (“ETFs”), or investments in cryptocurrency related businesses. Additionally, if you traded or sold cryptocurrencies, you may be required to disclose it as income. If you have questions about cryptocurrency or other digital assets, please contact the Commission for further guidance.

I have investments in exchange traded products (“ETPs”), including exchange traded funds (“ETFs”), do I need to include the underlying assets on my financial disclosure statement?

You are required to disclose the ETP or ETF on your financial disclosure statement, but you are not required to disclose the underlying assets within the ETP or ETF.