Trust Examiner School eBook

DFI Trust Company Examiner’s Entry Checklist

40 ASSET MANAGEMENT A. List of fiduciary trust asset control balances as of examination date June 30, 2021 , sorted by major asset category (e.g., demand deposits, common stock, preferred stock, U S Government Obligations, etc.). B. Any approved lists or investment criteria for purchasing and monitoring the following: 1. Stocks. 2. Bonds. 3. Mutual Funds. C. If asset allocation is used, please provide the following: 1. Description of asset allocation models used including various investment objectives. 2. Suitability analysis or client risk tolerance questionnaire. 3. Investment Policy Statement (“IPS”) format. 4. Model performance for current quarter end and prior year end relative to benchmark for the Company’s accounts on a “Macro” level. D. Listing of all sources used for investment research. E. Listing of third party investment advisors used and an master agreements entered into since the prior examination F. Describe the procedure in effect for the periodic appraisal and review of trust assets. G. Documentation of environmental liability inspections if they are maintained separately from account files. H. Describe the procedures in effect for the review of overdrafts, and cash balances available for investment. I. Describe any sweep fee arrangements in effect, including the solicitation of written customer approvals to use their accounts in such arrangements, also please: 1. Indicate if ERISA accounts are charged sweep fees. 2. State what procedures are followed to inform customers of the dollar value of sweep fees earned against their accounts. J. Does the Company engage in any customer securities lending activities? If so, provide the following: 1. A copy of the securities lending agreement executed with the Company, customers and counterparties. 2. A copy of the Company’s securities lending confirmation format.