Current through Reg. 49, No. 38; September 20, 2024
(a) Purpose. The purpose of this section is
to provide for the preservation and location of trust company records to
enhance the examination process by the department and to provide flexibility to
trust companies in conducting their affairs. A trust company that maintains
fiduciary records at one or more locations other than its principal place of
business should be aware that a separate examination may be required at each
such location, the cost of which will be borne by the trust company. This
section may not be construed to prevent the maintenance of a duplicate set of
records if the trust company considers such to be advisable.
(b) Corporate records. Those books and
records of a trust company that are related to corporate governance and
operations must be kept and maintained at the trust company's principal place
of business in this state. Such books and records include but are not
necessarily limited to:
(1) general and
subsidiary ledgers;
(2) income and
expense ledgers;
(3) supporting
documentation for assets and liabilities;
(4) contracts with suppliers and service
providers;
(5) corporate state and
federal tax information and documentation;
(6) correspondence with the
department;
(7) directors
minutes;
(8) shareholders
minutes;
(9) corporate governance
documents such as bylaws, certificate of formation, and stock register;
and
(10) reports of condition and
income.
(c) Fiduciary
records. Those books and records of a trust company that are related to
fiduciary accounts and operations may be kept and maintained either at the
trust company's principal place of business in this state or at the place where
the trust company's fiduciary accounts are administered; provided that such
books and records may not be divided and kept partially at different locations
without the prior consent of the department. Such books and records include but
are not necessarily limited to:
(1) governing
documents for each trust, custodial account, agency or other type of account
administered;
(2) documentation
supporting the purchase or sale of any investments from or to the accounts
administered, including broker confirmations and safekeeping
receipts;
(3) documentation on any
assets accepted in-kind with supporting documentation justifying the amount
booked;
(4) account reviews,
including administrative and asset reviews;
(5) copies of all correspondence on each
account administered, including documents relating to litigation, bankruptcy
proceedings or other court action;
(6) copies of income tax returns on any
accounts which are required to submit income tax returns;
(7) copies of customer account
statements;
(8) trial balance of
all accounts administered reflecting all investments, including principal cash
and income cash, at market value and cost;
(9) overdraft listing of any overdrawn
account administered and reflecting date of overdraft;
(10) large cash balance listing of accounts
administered;
(11) safekeeping
report from each institution holding items for safekeeping, with reconcilement
to the trust company account trial balance;
(12) master asset listing of all investments
by type, reflecting account holder, number of units held with cost and market
values;
(13) assets by account
holder reflecting investments with number of units, cost and market
values;
(14) broker commission
report reflecting all brokers utilized for purchase or sale of investments,
dollar volume, commissions paid and number of transactions;
(15) reconcilement of fiduciary cash accounts
including copies of bank account statements;
(16) reconcilement of suspense accounts with
listing of items outstanding and origination dates;
(17) complaint file; and
(18) copies of quarterly report of trust
assets.
