Trust Examiner School eBook

Personal Trust (Continued)

Investments (Consider attaching printout): Investment Objective: Invest authority: Sole discretion Shared with

None (directed by)

_

Investment Officer:_______________________________________ Portfolio Composition 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)

1. Does the investment review include short and long term account performance? Yes/No 2. Does the investment review compare performance versus benchmark? Yes/No 3. Does the investment review include narrative discussing performance versus benchmark? Yes/No 4. Does the investment review include detection of asset concentrations (generally over 10%)? Yes/No

Overdrafts 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 to bring account in line with objective, if applicable?

2. Is there direction to retain specific assets? 3. Are there assets in the account which 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?

4. Are client directions present?

a. Purchase specific assets? b. Maintain a concentration in a specific asset or asset class? 5. Does the bank make full disclosure when seeking consents from beneficiaries? Has management determined that consents are binding? 6. Are all assets priced; and if not, is this disclosed to the client?

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FDIC 6350/38 (10-12)