Trust Examiner School eBook

Agency (Continued)

Investments (Attach printout) – Applicable for Investment Management Agency Investment Objective: Invest authority: Sole discretion Shared with

Investment Officer:_____________________

Portfolio Composition – show as % of total Asset Class: Target or Model Current Allocation

Comments (at a minimum comment upon action plans to bring account in line with objective)

Include comments on how valued – (failure to value could be problem if not disclosed)

Overdrafts Other Liabilities Negative answer to the following could indicate problems 1. Investment Objective: a. Is there support for the initial allocation on file? b. Does management periodically update the client’s objective? c. Did management document the updated objective?

d. Is management taking action bring account in line with objective, if applicable?

2. Are there assets in the account that are not on approved lists?

a. If yes, has management approved and is management monitoring those assets? b. If management is not monitoring, was proper disclosure made to the client?

3. Client Directions:

a. Purchase specific assets? b. Retain specific assets (may be listed in governing agreement)? c. Maintain a concentration in a specific asset or asset class? 4. Is there s ufficient language within direction letters to protect the bank (conform to the concept of Informed Consent)? 5. Are all assets priced; and if not, is this disclosed to the client?

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FDIC 6350/50 (10-12)