Trust Examiner School eBook

160.35 A copy of the following: (a) a list of approved investments (buy/sell list), including mutual funds and cash equivalents. (b) details of any asset allocation models and/or screening criteria used to select investments. (c) investments on any internal Watch List 160.36 A list of all derivative transactions, to include options transactions, since the last examination. 160.37 Describe the investment objective selection process. 160.38 A list of external investment managers utilized and documented due diligence to include initial and ongoing. 160.39 Reports used to oversee the investment function, including quality as well as performance. Information on any 12b 1, shareholder, administrative, or other recordkeeping mutual fund fee arrangements in effect, including the following: (a) policies and procedures pertaining to the use of funds with these features, (b) name of fund, (c) type of fee, (d) accounts using the fund, (e) disclosures provided to the client and written customer approvals to use their accounts in such arrangements, (f) method of off-set against account level fiduciary fee ERISA and IRA accounts The following information on broker relationships: (a) a list of brokers utilized and broker fees and commissions paid last year and year-to-date, (b) the last formal analysis of broker relationships, (c) procedures followed to assure best execution. The following information on real estate holdings within trust accounts: (a) a list of mortgaged property in which there exists delinquencies in principal, interest, or taxes; (b) a list of real property held by accounts on which taxes are delinquent; (c) a list of expired property insurance on mortgaged property or other real property held as assets, unless liability thereon is covered by blanket insurance; (d) a statement of the department's policy and practice concerning employment of agents in the operation of management of real estate owned in fiduciary accounts (if such agents make cash collections, describe procedures for monitoring the receipt of the funds); (e) a list of pending foreclosures involving mortgages held as trust assets; (f) a list of real estate held by accounts on which there exists delinquincies in rental income; (g) a list of real property held in any fiduciary account that is leased to the bank, an affiliate, or to any director, officer, or employee; (h) real estate valuation procedures if not specified in policy. If the bank, any subsidiary, or any affiliate serves as investment advisor or investment manager for any mutual fund or acts as a sponsor, distributor, or custodian for any outside, own bank, subsidiary, or affiliate operated mutual fund, please provide the name of the individual supervising this activity. 160.40 160.41 160.42 160.43 A list of all past due notes receivable. 160.44 Employee Benefit Plans: If third party administrator services are offered, please provide a list of accounts, a copy of the governing instrument, and the most recent audit (if not included with other audits submitted.) Employee Benefit Plans: Describe oversight of the use of own-bank deposits and the use/receipt of 12b-1 and shareholder or administrative service fees. Employee Benefit Plans: Disclosures provided to applicable parties to conform with ERISA (e.g. Section 408(b)(2)-Covered Service Provider Fee Disclosure and Section 404(a)-5-Fiduciary Requirements for Disclosure in Participant-Directed Individual Account Plans) if not already provided. Individual Retirement Accounts: For required minimum distributions, January disclosure for traditional IRAs and any disclosures for inherited IRAs. Individual Retirement Accounts: List of non-publicly traded assets, including name of acount holding and last valuation. Irrevocable Life Insurance Trusts: (a) Oversight procedures for ILITS; (b) List of accounts that hold assets other than insurance policies; (c) List of vendors used to assess if the policy is appropriate for the client. 160.47 Employee Benefit Plans: Describe the method used to monitor delinquent loans. 160.48 160.49 160.50 Individual Retirement Accounts: Copy of prototype documents. 160.51 160.52 160.45 Employee Benefit Plans: Copy of float disclosures. 160.46

160.53