what is a trust company

Banks, trust companies and credit unions are all types of deposit-taking institutions. Banks. Banks are federally incorporated and are regulated by the. Our estate and trust solutions are provided through Concentra Trust, a wholly-owned Our fees are competitive with other national trust companies. Although holding companies and trust companies have some similarities, they are separate types of businesses. The distinction is clear when viewing the.

Related Videos

What is TRUST COMPANY? What does TRUST COMPANY mean? TRUST COMPANY meaning \u0026 explanation

Understanding How Top Trust Companies Operate

Banks, insurance companies, brokerage firms, and financial planning firms are all vying for a piece of your portfolio. As a result, consumers often find their assets scattered among these institutions. One solution to this problem is a trust company, which can provide a variety of investment, tax, and estate planning services for clients. This article will provide a high-level overview of the nature and function of trust companies, as well as the services they offer.

What Is a Trust Company?

By definition, a trust company is a separate corporate entity owned by a bank or other financial institution, law firm, or independent partnership. Its function is to manage trusts, trust funds, and estates for individuals, businesses, and other entities. A trust is an arrangement that allows a third party or trustee to hold assets or property for a beneficiary or beneficiaries.

Trust companies get their title from the fact that they act in a fiduciary capacity for their clients—as trustees. A fiduciary is an organization or an individual with the responsibility to act on behalf of others to manage their assets. 

The majority of a trust company's assets are held in actual trusts, with the trust company named as the trustee. Trust companies generally employ several types of financial professionals, including financial planners, attorneys, portfolio managers, CPAs, and other tax professionals, trust officers, real estate experts, and administrative personnel.

Key Takeaways

  • A trust company is a separate corporate entity owned by a bank or other financial institution, law firm, or independent partnership.
  • A trust is an arrangement that allows a third party or trustee to hold assets or property for a beneficiary or beneficiaries.
  • A trust company manages trusts, trust funds, and estates for individuals, businesses, and other entities.
  • Trust companies perform a wide range of services related to investment and asset management as well as safekeeping services.

What Can a Trust Company Do for Me?

Trust companies perform a wide range of services related to investment and asset management. Of course, one of the primary functions of most trust companies is managing the investment portfolios within the trusts of their clients. The investment management is done either in-house or by an affiliated third-party manager selected by or recommended to the client.

A wide variety of investments, ranging from individual securities and mutual funds to derivatives and real estate, can be employed to achieve various investment objectives, such as growth or income. Special services are also available for high-net-worth clients, including alternative investments, such as limited partnerships, natural resources, private equity, and hedge funds. Regardless of the type of management used, investment management is always customized for each client's risk tolerance and time horizon.

Financial and Trust Services

Trust companies also can provide safekeeping services within secure vaults for other types of tangible investments or valuables, such as jewelry and collectibles. Often financial planners are employed to produce comprehensive financial plans for clients, covering all aspects of a client's financial life, including investments, insurance, and retirement planning. A planner might also focus on a specific segment of a client's finances, such as investment or college planning. Comprehensive income, gift, trust, and estate tax return preparation and planning are also standard fare for many trust companies. Even escrow services and holding accounts for proceeds from 1031 exchange real estate transactions can be provided, if necessary. Section 1031 is an Internal Revenue Code (IRC) provision that allows taxes to be deferred on qualifying assets such as real estate.

Estate Planning Services

Trust companies can handle all aspects of the estate settlement process, including valuation, dispersion, and re-titling of assets, payment of debts, and expenses, estate tax return preparation, the sale of closely-held businesses, and all other necessary tasks related to passing on the property of a deceased grantor or client. Trust companies often end up working with their clients' heirs as well, providing the same array of services to the estate assets' recipients as to the donor.

Corporate Trust Services

Corporate trust services can provide assistance with both the issuance and administration of corporate debt. Corporate trusts might distribute the interest payments from the corporation to the bondholders and ensure that the issuer is adhering to the covenants of the bond agreement.

Types of Trusts

Trust companies manage all phases of the trust creation, administration, and disposition processes. Although there are many different types of trusts, they usually fall into two types of categories.

Revocable Trust

A revocable trust is a trust that can be changed at any time. For example, the beneficiaries could be changed, or the trust can be dissolved. The owner of a revocable trust maintains control over the trust at all times. The owner or grantor can be the beneficiary or name anyone.

Irrevocable Trust

An irrevocable trust doesn't allow any changes nor can the trust be dissolved without the permission from the beneficiary. Irrevocable trusts are helpful in avoiding taxes on gifts or protecting the beneficiary's inheritance from any legal actions from creditors if the beneficiary has financial issues later in life.

Other types of trusts include:

Why Use a Trust Company?

Trust companies can provide a wealth of services to clients from one convenient, centralized location. They save their clients time and effort by eliminating the need to coordinate financial assets and information between brokers, financial planners, tax advisors, tax preparers, and attorneys. Trust companies also take full fiduciary responsibility for their clients' financial well-being, thus assuring that the clients' best interests are always considered in each service and transaction performed.

Consumers who want to engage the services of a trust company will have many local entities from which to choose. Virtually all major banks and savings institutions offer trust services through a separate department. Still, most clients who wish to employ a trust company must generally meet certain financial requirements; for instance, a trust may require the client to have a net worth of at least $500,000.

The Bottom Line

Trust companies provide a wide array of services, ranging from trust and investment administration to comprehensive wealth management services, such as tax preparation, tax advice, and financial planning services. For consumers seeking a 'one-stop-shop' approach to the management of their financial affairs, trust companies may offer the perfect solution.

Источник: https://www.investopedia.com/articles/retirement/08/trust-company.asp

FATF Guidance for a Risk-Based Approach for Trust and Company Service Providers

Trust and company service providers (TCSPs) are involved in a wide range of services and activities for their clients. These services include: acting as a director or secretary of a company or similar position, providing a registered office or business address for a company, acting as trustees of an express trusts, among others. Not all of the persons and professionals active in this sector provide the same services.

Depending on the country in which they operate, TCSPs can also take different forms, from individual firms to subsidiaries of large financial institutions. Criminals may seek TCSP services to help them retain control pirates of the caribbean at worlds end davy jones death proceeds of their crimes, while disguising the origin and ownership of these assets. Through the creation of shell companies or trusts, they can conceal their ownership and create a veneer of legitimacy.

This guidance highlights the need for a sound assessment of the ML/TF risks that trust and company service providers face so that the policies, procedures and initial and ongoing client due diligence measures can mitigate these risks. This risk-based approach is central to the effective implementation of the FATF Recommendations to fight money laundering and terrorist financing.

This guidance is aimed at TCSP practitioners, countries and their competent authorities, including supervisors of TCSPs, as well as practitioners that have TCSPs as customers. The guidance aims to support TCSPs in the design of effective measure to manage their ML/TF risks, when establishing or maintaining business relationships. In particular, it explains the obligation for TCSPs to identify and verify beneficial ownership information and provides examples of simplified, standard and enhanced CDD measures. 

The guidance contains a section for supervisors of TCSPs. It explains the risk-based approach to supervision, as well as the supervision of the risk-based approach. The guidance highlights the importance of supervision of beneficial ownership requirements in relation to a trust or other legal arrangement so that such information is maintained and available in a timely manner.  The FATF developed this non-binding guidance with significant input from the TCSP sector, including through a public consultation in March 2019, to ensure that it reflects their practical expertise and good allpoint atm deposit cash. It replaces the version of 2008 and brings it in line with the current FATF Recommendations. 

More on:

Источник: https://www.fatf-gafi.org/documents/riskbasedapproach/documents/rba-trust-company-service-providers.html

FAMILY OFFICES HAVE BEEN AROUND FOR YEARS, AND A FEW FAMILY OFFICES HAVE HELD TRUST POWERS OVER THE YEARS, CREATING A FAMILY PRIVATE TRUST COMPANY HAS BEEN RELATIVELY UNUSUAL FOR WEALTHY FAMILIES. HOWEVER, RECENT CHANGES IN STATE LAWS, NEW TECHNOLOGIES PERMITTING LOWER COST OPERATIONS AND AN INCREASE IN OUTSOURCING OPTIONS HAVE MADE THE PRIVATE TRUST COMPANY STRUCTURE MORE ATTRACTIVE THAN EVER TO FAMILIES SEEKING TO RETAIN CONTROL OVER THEIR FIDUCIARY ACTIVITIES.

Choosing a Private Trust Company

A private trust company, also known as a family trust company, is an entity that provides trust and fiduciary services to a single-family group. It is a state chartered, regulated entity and, as such, is prohibited from doing business with the general public.

As more and more states enact legislation to encourage private trust companies (PTCs), these structures are gaining in popularity. For families who hold family businesses, have active investment- oriented family offices, or who are simply frustrated by the constant turnover and service limitations of their institutional fiduciaries, the private trust company offers a unique opportunity to further both the estate planning as well as the family governance aspects of their wealth management plans. However, the path from choosing to pursue a private trust company charter to actual operation can be full of challenges for families who fail to address substantive operational and governance issues up front. This article provides a brief overview of the PTC landscape and attempts to lay out some of the pros and cons of this structure.

Benefits of a Private Trust Company

Private trust companies (“PTC”s) offer many advantages to families in the management of irrevocable trusts used for estate planning and, in the context of family businesses, a vehicle for succession planning. These benefits include:

CLEAR TRUSTEE SUCCESSION.

Creating and naming a family owned private trust company as trustee can help insulate the family from the risks of individual trustees (who die or may become incapacitated) as well as corporate fiduciaries (who can undergo mergers, changing ownership and service models drastically, or even go out of business entirely). A PTC provides a known successor for family trusts and can ensure that the PTC will reflect the family’s values and goals in the ongoing management of the assets. Moreover, the PTC will usually hire (internally or outsourced) professionals to manage the trusts and provide for family involvement in the various operational committees, ensuring institutional-quality oversight for the family assets.

NON-TRADITIONAL ASSET MANAGEMENT.

Generally speaking, wealth is created through the ownership of concentrated holdings, usually rooted in the creation of a business venture, which may or may not be “family owned.” PTCs can be structured to preserve the ownership of these assets. Under the Uniform Prudent Investor Act (adopted in almost all states), trust documents may specifically direct the trustee to hold assets but the laws still require a trustee to exercise “prudent” judgment as to when the purposes of the trust might be better served by diversifying out of the concentrated or illiquid asset. A PTC can be structured to provide very tailored due diligence and oversight of unusual assets or concentrated positions, permitting a better balance between the perceived need to diversify and the grantor or beneficiary’s desire to hold the asset. PTCs can also hold other assets, such as real estate, private equity or alternative assets such as hedge funds in concentrations that may be appropriate for the family but might not be acceptable to a commercial fiduciary. As PTCs have no profit motive, no proprietary product and no conflicts of interest, the entity can reduce costs of trust administration, while ensuring that risk management is targeted to the needs of the family.

LIMITED LIABILITY FOR TRUSTEES AND FAMILY MEMBERS.

Trustees have personal liability for their decisions. This can be a deterrent for qualified individuals who would otherwise be willing to advise a family in a fiduciary capacity. Using a PTC can allow these individuals to assume an active role on the board of directors, with an added level of liability protection provided by PTC level D&O insurance. Further, a well-constructed PTC can provide the infrastructure (and administrative support) to establish clear processes and procedures for trust administration, so that there is no tradeoff between institutional oversight and personal service.

IMPROVED INVESTMENT OPPORTUNITIES AND OVERSIGHT.

Many PTCs are formed by families with large pools of liquid assets (often from the sale of a business) and can i order checks on chase app on a commingled basis. The PTC structure can facilitate the creation of investment vehicles, such as common trust funds, to allow trusts of all sizes to access asset classes with higher minimums. These vehicles can provide better pricing and lower investment minimums because the common trust fund, not the individual investor trusts, are seen by investment managers as a single entity. Thus family trusts accounts, regardless of size, can invest in assets such as private equity funds or hedge funds that would be otherwise inaccessible.

KNOWN LEVELS OF REGULATORY OVERSIGHT.

With the recent changes to the exemptions for family offices from SEC regulation, many families are turning to PTCs as a way to avoid becoming a “registered investment advisor” with the attendant disclosure to the SEC. While the choice of a PTC structure is not without its own regulatory considerations, many states permit PTCs to ask for exemptions from the standard regulatory requirements that would apply to banks or trust companies that serve the broader public.

CHOICE OF STATE LAWS.

As state laws on decanting, taxation, and prudent investor rules vary, the PTC can permit a family to choose a jurisdiction most beneficial to the particular issues facing the family in its succession planning. Separately, each state has different rules for how a PTC can qualify and operate in its jurisdiction (discussed below) that will often dictate where the PTC will be set up. Several states have actively sought PTC business and have adopted legislation to facilitate the creation and operation of PTCs in those jurisdictions. Further, a PTC can usually create subsidiaries to gain access to any jurisdiction necessary, allowing for even more forum shopping as trusts are created.

FAMILY LEADERSHIP OPPORTUNITIES

The PTC offers an opportunity for family members to have significant involvement in the oversight and operation of the governing entity, within limits. While the IRS has provided some guidance in Notice 2008-63 on the operation of PTCs, the extent of family involvement is still somewhat unclear. The IRS notice discourages family member involvement in discretionary distributions or amendment committees; however, the operation of a PTC still provides many opportunities for a family to participate in the dialog around trust management to an extent denied them in an institutional relationship. This, in turn, creates an opportunity for the family to better shape the long-term stewardship of their family’s wealth and cultural goals. Trustees have an obligation to ensure that the beneficiaries of trusts understand the provisions and are knowledgeable as to the management of their trust assets, which also ensures the education and development of family members.

Considerations to forming a PTC

The regulatory oversight at a state level can seem daunting, the formation of a PTC is relatively easy, although not to be entered into lightly. There are several financial and legal considerations at play. First, most states have some capital requirement for the PTC itself, in order for it to act as a fiduciary and exercise the fiduciary powers granted under state law. These capital requirements can range from a few hundred thousand dollars to several million dollars of capital. Upfront legal fees can add another hundred thousand dollars or more to the process and there may be application fees at the state level. Further, trust companies often need to have some level of administrative and reporting capability, which can be developed internally or outsourced. While these costs may seem significant, most families realize overall cost savings, particularly when compared to corporate fiduciaries (who must operate at often significant profit margins to account for overhead).

Because a PTC can tailor its services to the family’s needs, and hire external providers on an as needed basis, the operational costs can be significantly reduced. All PTCs will have some level of public disclosure, depending on the chartering state, but families can either select a state that will allow for exemption from these requirements, or adopt a structure that limits any public disclosure. While some states (South Dakota) require significant personal and financial information from principal shareholders, board members and executive officers of the PTC, others have minimal disclosure and information requirements (Tennessee). One final consideration is often the state requirements for a local presence. This can vary by state and require simply a mailbox to an established office or frequent presence in the state by at least some of the officers.

ALTERNATIVES TO CONSIDER

When considering a PTC, it is important to understand the alternatives available. Where the assets are not significant, or where the family governance structures do not exist, creation of a PTC may not be a viable option.

  • CORPORATE TRUSTEES.
    • A corporate trustee, usually a commercial bank or perhaps a dedicated trust company, has the administrative infrastructure and expertise to handle trust administration. Many have strong beneficiary programs and can provide support to an individual co-Trustee as well. Depending on the structure of the family, a corporate trustee might be the best alternative in terms of cost and operational overhead. Many families will pair a corporate trustee with an individual family trustee. However, where the assets of a family are complex, or illiquid, and involve ownership of operating businesses, many corporate trustees are reluctant to act in a full fiduciary capacity. Also, family members may wish to use several different corporate trustees, depending on their personal investment management relationships.
  • DIRECTED TRUSTS.
    • Other options exist for families using corporate fiduciaries but may not provide the desired levels of control. Many states permit the use of “directed trusts” where the administrative duties can be separated from the investment of trust assets. As such, a corporate trust company can be hired as a “directed” trustee for all or part of a trust corpus and will take “directions” from a designated external individual or committee. Most directed trusts must be created, so this option is often not available to existing trusts without some form of alteration (either “decanting” to a new trust, if permitted under state law or seeking a court order to amend the trust). While directed trusteeships can avoid the need for a regulated PTC, the ultimate matter of controlling succession and decisions with respect to directed assets remains.
  • COMMON TRUSTEES.
    • Other families will choose to use a common trustee, often in coordination with a directed trust structure so that all family trusts have one corporate fiduciary and one common investment committee. The treatment of these investment committees is uncertain under the new SEC rules with respect to registered investment advisors so this structure may simply trade one type of regulatory oversight for another (although these investment committees should fall within the definition of a family office but each situation should be reviewed under SEC notices on family office operations (SEC Release No. IA-3220)). Likewise, the succession and control issues remain as individual committee members’ transition. If a family is adopting a single corporate fiduciary and using an investment committee to direct trust assets, they would be wise to have some form of formal governance (and legal support) to the investment committee operations, both in terms of its operation as well as contractual limitations with trusts that are managed by the committee. This structure also still exposes the family to the risk of transitions at the corporate fiduciary level, where they have little control over changes in either the cost of the services or a change to the service structure. This lack of control remains a deterrent for many families. If this alternative is pursued, families should select a trustee through a rigorous selection process and provide for some continuing oversight and due diligence process as to the management team selected.

Finally, there are many smaller commercial trust companies that are eager to add assets to their balance sheets. Families looking at these providers should consider the owners’ exit strategies and whether a joint venture is possible (or even of interest). A very large family might be able to negotiate an equity stake in the controlling entity, or some significant discount for services. Investment management firms, including trust companies, often trade at significant multiples what is a trust company established book valuations in a sale; this premium is never passed along to the clients but retained by the equity owners. For families of substantial size, it seems feasible that failing to monetize the value of these trust assets by negotiating an equity stake or a significant break in fees might be considered a breach of their own fiduciary obligation to the family and succeeding generations when alternatives like a PTC exist.

Conclusion

While a Private Trust Company is not a viable alternative for every family, for families of significant wealth, families with operating businesses, or families with unusual assets, such as significant real estate investments, active family offices, or just odd assets like art or collectibles, the PTC should be given serious consideration as an alternative to a corporate or individual fiduciary. The collateral benefits to family operations, governance and succession plans
(not to mention operational cost savings) can far outweigh the initial headaches of setting up a potentially complex entity.

WORKING WITH US:

Wealthaven’s independent views and deep expertise across business, investments, estate and tax planning can be an invaluable resource for families creating or refining the governance structures around significant and/or complex assets. By supplying technical knowledge and an objective voice, we can assist the family in identifying the proper vehicles, or forums, to ensure succession plans are successfully implemented.

With Private Trust Companies, we can advise on the structure, choice of jurisdiction and work with local counsel to set up the entity. We provide operating support, either as a consultant to the board or in the actual administration of trust assets. We believe strongly that a properly structured trust company needs to have robust, yet reasonable, policies, procedures and internal controls for its operation. We work with the existing family office team to develop these procedures or create them specifically for the family’s needs and abilities. Further, as part of our overall planning services, Wealthaven works in partnership with the family members, and their legal and financial advisors to proactively review investment, insurance and estate plans, allowing for the trust company to identify any issues for its fiduciary oversight of the trust assets.

For families seeking a less complicated solution, we will create an infrastructure to support the use of directed or administrative trust structures in conjunction with corporate (commercial) trustees, such as a bank or brokerage firm. Finally, Wealthaven principals can be named to act as a trustee (sole or co-trustee) with your family members or can serve as a trust protector.

IRS CIRCULAR 230 DISCLOSURE:

Please be advised that any discussion of U.S. tax matters contained within this communication (including any attachments) is not what is a trust company or written to be used and cannot be used for the purpose of (i) avoiding U.S. tax-related penalties or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein. Before acting on any advice or recommendation in this material, you should consider whether it is suitable for you particular circumstances and, if necessary, seek legal, tax or other professional advice. These views are current as of the time of publication and are subject to change without notice. No part of this document may be reproduced in any manner without the written permission of Wealthaven, LLC. Information dated as of October 2013. ©2013. Wealthaven, LLC. All rights reserved.

We are experts in all aspects of estate and gift planning.

Contact UsИсточник: https://wealthaven.com/publications/private-trust-companies-a-primer/

Loan and Trust Corporations Act, R.S.O. 1990, c. L.25

Français

Loan and Trust Corporations Act

R.S.O. 1990, CHAPTER L.25

Consolidation Period:  From December 8, 2020 to the e-Laws currency date.

CONTENTS

PART I
INTERPRETATION AND APPLICATION

1.

Definitions

3.

Application of Act

4.

Non-application of Act

PART IV
REGISTRATION

30.

Registration

31.

Application for registration

31.1

Conditions to registration

36.

Revocation on request

37.

Revocation of registration, federal corporations

PART X
BUSINESS AND INVESTMENTS

155.

Status of money received as a deposit

173.

Common trust funds authorized

175.

Trustee, executor, etc.

176.

Trusts

PART XI
ADMINISTRATION

180.

Capacity outside Ontario

181.

Records

182.

Power to require evidence

189.

Notice as proof

190.

Agreements with other Governments

191.

Capacity of Chief Executive Officer

PART XII
ENFORCEMENT AND CIVIL REMEDIES

192.

Chief Executive Officer’s orders

193.

Appeals

194.

Chief Executive Officer’s decisions

195.

Chief Executive Officer may be party

196.

Transcript

197.

Hearing in private

206.

Investigation

207.

Protection from personal liability

208.

Order to freeze property

PART XIII
OFFENCES AND PENALTIES

213.

Carrying on business of corporation prohibited

214.

Offences

215.

Limitation period

216.

Order to comply

217.

Restitution

PART XIV
MISCELLANEOUS AND REGULATIONS

222.

Delivery of notices

223.

Regulations

223.1

Forms

224.

Fees

Part i
Interpretation and application

Definitions

1 In this Act,

“Authority” means the Financial Services Regulatory Authority of Ontario continued under subsection 2 (1) of the Financial Services Regulatory Authority of Ontario Act, 2016; (“Autorité”)

“bank” means a bank or authorized foreign bank within the meaning of section 2 of the Bank Act (Canada); (“banque”)

“body corporate” means any body corporate www t online de sport or without share capital and wherever or however incorporated; (“personne morale”)

“capital base” means the shareholders’ equity of a corporation calculated in the prescribed manner; (“apport en capital”)

“Chief Executive Officer” means the Chief Executive Officer appointed under subsection 10 (2) of the Financial Services Regulatory Authority of Ontario Act, 2016; (“directeur général”)

“common trust fund” means a fund maintained by a trust corporation in which money belonging to various estates and trusts in its care are combined for the purpose of facilitating investment; (“fonds en fiducie collectif”)

“corporation” means a loan corporation or a trust corporation; (“société”)

“deposit” means, in relation to a registered corporation, money received by it that is repayable on demand or after notice or that is repayable upon the expiry of a fixed term; (“dépôt”)

“depositor” means a person who has a deposit in a corporation; (“déposant”)

“loan corporation” means a body corporate incorporated or operated for the purpose of borrowing money from the public by receiving deposits and lending or investing such money but does not include a bank, an insurance corporation, a trust corporation, a credit union, caisse populaire or league under the Credit Unions and Caisses Populaires Act, 1994 or a retail association under the Cooperative Credit Associations Act (Canada); (“société de prêt”)

Note: On a day to be named by proclamation of the Lieutenant Governor, the definition of “loan corporation” in section 1 of the Act is amended by striking out “caisse populaire or league under the Credit Unions and Caisses Populaires Act, 1994” and substituting “or central under the Credit Unions and Caisses Populaires Act, 2020”. (See: 2020, c. 36, Sched. 7, s. 318 (1))

“prescribed” means prescribed by the regulations; (“prescrit”)

“real estate” includes messuages, lands, rents and hereditaments, whether freehold or of any other tenure, and whether corporeal or incorporeal, and leasehold estates, and any undivided share thereof, and any estate, right or interest therein but does not include hydrocarbons, minerals or aggregates in or under the ground; (“biens immeubles”)

“registered corporation” means a corporation registered under this Act; (“société inscrite”)

“regulations” means the regulations made under this Act; (“règlements”)

“Tribunal” means the Financial Services Tribunal continued under the Financial Services Tribunal Act, 2017; (“Tribunal”)

“trust corporation” means a body corporate incorporated or operated,

(a) for the purpose of offering its services to the public to act as trustee, bailee, agent, executor, administrator, receiver, liquidator, assignee, guardian of property or attorney under a power of attorney for property, and

(b) for the purpose of receiving deposits from the public and of lending or investing such what is a trust company (“société de fiducie”)

“voting share” means any share of any class of shares of a body corporate carrying voting rights under all circumstances and any share of any class of shares carrying voting rights by reason of the occurrence of any contingency that has occurred and is continuing. (“action assortie du droit de vote”)  R.S.O. 1990, c. L.25, s. 1; 1992, c. 32, s. 19; 1996, c. 2, s. 70 (1); 1994, c. 17, s. 103; 1997, c. 19, s 13 (1); 1997, c. 28, s. 149; 1999, c. 6, s. 34 (1, 2); 2001, c. 8, s. 52; 2004, c. 8, s. 46; 2004, c. 31, Sched. 23, s. 1; 2005, c. 5, s. 38 (1-3); 2017, c. 34, Sched. 17, s. 23; 2018, c. 8, Sched. 16, s. 1; 2020, c. 36, Sched. 14, s. 9 (1).

2 Repealed:  2001, c. 8, s. 53.

Application of Act

3 This Act applies to all corporations.  2001, c. 8, s. 54.

Non-application of Act

4 This Act does not apply to a body corporate that is authorized, constituted or operated for the purpose of lending money on the security of real estate or for the purpose of investing money in mortgages, where the body corporate borrows only by way of,

(a) loans from banks, corporations, insurance companies or credit unions or caisses populaires incorporated or registered under the Credit Unions and Caisses Populaires Act; or

Note: On a day to be named by proclamation of the Lieutenant Governor, clause 4 (a) of the Act is amended by striking out “or caisses populaires incorporated or registered under the Credit Unions and Caisses Populaires Act” and substituting “within the meaning of the Credit Unions and Caisses Populaires Act, 2020”. (See: 2020, c. 36, Sched. 7, s. 318 (2))

(b) the issue of debentures, notes or like obligations of an amount not less than $100,000 each to any one person on the person’s account, whereby the body corporate is not obligated or cannot by demand of the holder be obligated to repay the money secured by the debenture, note or obligation within five years from the date of its issue.  R.S.O. 1990, c. L.25, s. 4.

5 Repealed:  2001, c. 8, s. 55.

6 Repealed:  2001, c. 8, s. 56.

7 Repealed:  2001, c. 8, s. 57.

8, 9 Repealed:  2001, c. 8, s. 58.

10 Repealed:  2001, c. 8, s. 59.

11-13 Repealed:  2001, c. 8, s. 60.

14, 15 Repealed:  2001, c. 8, s. 61.

16 Repealed:  2001, c. 8, s. 62.

17, 18 Repealed:  2001, c. 8, s. 63.

19-28 Repealed:  2001, c. 8, s. 64.

29 Repealed:  2001, c. 8, s. 65.

29.1Repealed:  2001, c. 8, s. 66.

PART IV
REGISTRATION

Registration

30 (1) The duty of determining, distinguishing and registering the corporations that under this Act are required to be registered and may be acceptable for registration, and of granting registration accordingly, is upon the Chief Executive Officer.  R.S.O. 1990, c. L.25, s. 30 (1); 2018, what is a trust company. 8, Sched. 16, s. 5.

Registers continued

(2) The registers known in English as the Loan Corporations Register and the Trust Corporations Register and in French as Registre des compagnies de prêt and Registre des compagnies de fiducie respectively are continued under the names Loan Corporations Register and Trust Corporations Register in English and Registre des sociétés de prêt and Registre des sociétés de fiducie in French respectively.  R.S.O. 1990, c. L.25, s. 30 (2).

Duty to keep registers

(3) The Chief Executive Officer shall keep the registers and shall record the following information in the register indicated:

1. In the Loan Corporations Register, the name of each loan corporation that has been granted registration and such other particulars as may be prescribed.

2. In the Trust Corporations Register, the name of each trust corporation that has been granted registration and such other particulars as may be prescribed.  2001, c. 8, s. 67 (1); 2018, c. 8, Sched. 16, s. 5.

Idem

(4) A corporation may be registered in either the Loan Corporations Register or the Trust Corporations Register.  R.S.O. 1990, c. L.25, s. 30 (4).

Idem

(5) The Chief Executive Officer shall note in the appropriate register,

(a) Repealed: 2001, c. 8, s. 67 (2).

(b) the fact that the registration of a corporation has been revoked;

(c) the fact that a registered loan corporation has been continued as a registered trust corporation or vice versa.  R.S.O. 1990, c. L.25, s. 30 (5); 2001, c. 8, s. 67 (2); 2018, c. 8, Sched. 16, s. 5.

Application for registration

31 (1) A corporation incorporated under the Trust and Loan Companies Act (Canada) may apply for initial registration as a loan corporation or as a trust corporation.  2001, c. 8, s. 68 (1).

Change

(2) A registered loan corporation may apply to change its registration to that of a trust corporation and a registered trust corporation may apply to change its registration to that of a loan corporation.  R.S.O. 1990, c. L.25, s. 31 (2).

(3) Repealed:  2001, c. 8, s. 68 (2).

(4) Repealed:  2001, c. 8, s. 68 (3).

Material to be furnished

(5) An application for registration shall follow the form approved by the Chief Executive Officer and shall be filed with the Chief Executive Officer together with such information, material and evidence as the form may specify.  R.S.O. 1990, c. L.25, s. 31 (5); 1997, c. 19, s. 13 (2); 1999, c. 12, Sched. I, s. 5 (3); 2018, c. 8, Sched. 16, s. 5.

Notice, additional information

(6) Where the Chief Executive Officer receives an application for the registration, the Chief Executive Officer may require notice of the application, containing such information as the Chief Executive Officer may require, to be published by the applicant in The Ontario Gazette and in a newspaper having general circulation in the locality in Ontario where the principal place of business of the corporation is located or is to be located.  R.S.O. 1990, c. L.25, s. 31 (6); 2001, c. 8, s. 68 (4); 2018, c. 8, Sched. 16, s. 5.

(7)-(9) Repealed:  2001, c. 8, s. 68 (5).

Conditions to registration

31.1 (1) A corporation that applies for registration under section 31 is entitled to be registered if the corporation has the authority to carry on business under the Trust and Loan Companies Act (Canada) and if the corporation meets the requirements described in subsection 31 (5).  2001, c. 8, s. 69.

Same, trust corporations

(2) No corporation shall be registered as a trust corporation unless the corporation is authorized to act as a trustee under the Trust and Loan Companies Act (Canada).  2001, c. 8, s. 69.

32 Repealed:  2001, c. 8, s. 70 (2).

33, 34 Repealed:  2001, c. 8, s. 71.

35 Repealed:  2001, c. 8, s. 72 (2).

Revocation on request

36 The Chief Executive Officer may revoke the registration of a registered corporation at the request of the corporation.  2001, c. 8, s. 73; 2018, c. 8, Sched. 16, s. 5.

Revocation of registration, federal corporations

37 (1) The registration of a corporation is revoked 1st national bank online the corporation receives notice that its authorization to carry on business under the Trust and Loan Companies Act (Canada) is revoked.  2001, c. 8, s. 74.

Effect of revocation

(2) When the registration of a corporation is revoked under subsection (1), the corporation shall cease to transact or undertake business in Ontario, except to the extent necessary to wind up its business in Ontario.  2001, c. 8, s. 74.

Same

(3) Subsection (2) does not apply if the corporation becomes registered again under this Act.  2001, c. 8, s. 74.

Same, liability

(4) Any liability incurred by the corporation after its registration is revoked may be enforced against it as if its registration had not been revoked.  2001, c. 8, s. 74.

38 Repealed:  2010, c. 26, Sched. 11, s. 1.

39 Repealed:  1997, c. 19, s. 13 (3).

40-49 Repealed:  2001, c. 8, s. 76.

50 Repealed:  2001, c. 8, s. 76.

51 Repealed:  2001, c. 8, s. 76.

52 Repealed:  2001, c. 8, s. 77.

53-58 Repealed:  2001, c. 8, s. 78.

59-61 Repealed:  2001, c. 8, s. 79.

62, 63 Repealed:  2001, c. 8, s. 80.

64 Repealed:  2001, c. 8, s. 81.

65-67 Repealed:  2001, c. 8, s. 82.

68 Repealed:  2001, c. 8, s. 83 (3).

69 Repealed:  2001, c. 8, s. 84 (2).

70-76 Repealed:  2001, c. 8, s. 85.

77 Repealed:  2001, c. 8, s. 85.

78-83 Repealed:  2001, c. 8, s. 85.

84, 85 Repealed:  2001, c. 8, s. 85.

86, 87 Repealed:  2001, c. 8, s. 85.

88 Repealed:  2001, c. 8, s. 86.

89 Repealed:  2001, c. 8, s. 87.

90, 91 Repealed:  2001, c. 8, s. 88.

92 Repealed:  2001, c. 8, s. 89.

93-101 Repealed:  2001, c. 8, s. 90.

102 Repealed:  2001, c. 8, s. 91.

103-105 Repealed:  2001, c. 8, s. 92.

106 Repealed:  2001, c. 8, s. 92.

107 Repealed:  2001, c. 8, s. 92.

108 Repealed:  2001, c. 8, s. 93.

109 Repealed:  2001, c. 8, s. 94.

110 Repealed:  2001, c. 8, s. 95.

111, 112 Repealed:  2001, c. 8, s. 96.

113, 114 Repealed:  2001, c. 8, s. 96.

115 Repealed:  2001, c. 8, s. 96.

116 Repealed:  2001, c. 8, s. 97.

117 Repealed:  2001, c. 8, s. 98.

118-125 Repealed:  2001, c. 8, s. 99.

126 Repealed:  2001, c. 8, s. 100.

127 Repealed:  2001, c. 8, s. 101.

128 Repealed:  2001, c. 8, s. 102.

129 Repealed:  2001, c. 8, s. 103.

130, 131 Repealed:  2001, c. 8, s. 104.

132 Repealed:  2001, c. 8, s. 105.

133 Repealed:  2001, c. 8, s. 106.

134 Repealed:  2001, c. 8, s. 107.

135 Repealed:  2001, c. 8, s. 108.

136, 137 Repealed:  2001, c. 8, s. 109.

138 Repealed:  1997, c. 19, s. 13 (8).

139 Repealed:  2001, c. 8, s. 110.

140 Repealed:  2001, c. 8, s. 111.

141 Repealed:  2001, c. 8, s. 112.

142 Repealed:  2001, c. 8, s. 113.

143 Repealed:  2001, c. 8, s. 114.

144 Repealed:  2001, c. 8, s. 115.

145 Repealed:  2001, c. 8, s. 116.

146 Repealed:  2001, c. 8, s. 117.

147 Repealed:  2001, c. 8, s. 118.

148-149 Repealed:  2001, c. 8, s. 119.

150 Repealed:  2001, c. 8, s. 119.

151 Repealed:  2001, c. 8, s. 120.

152 Repealed:  2001, c. 8, s. 121.

PART X
BUSINESS AND INVESTMENTS

153 Repealed:  2001, c. 8, s. 122.

154 Repealed:  2001, c. 8, s. 123.

Status of money received as a deposit

155 Money received by a trust corporation as a deposit shall be deemed to be held by it in trust for its depositors and the trust corporation shall be deemed to guarantee the repayment thereof.  2001, c. 8, s. 124.

156 Repealed:  2001, c. 8, s. 125.

157 Repealed:  2001, c. 8, s. 126.

158 Repealed:  2001, c. 8, s. 127.

159 Repealed:  2001, c. 8, s. 128.

160 Repealed:  2001, c. 8, s. 129.

161 Repealed:  2001, c. 8, s. 130.

162 Repealed:  2001, c. 8, s. 131.

163 Repealed:  2001, c. 8, s. 132.

164 Repealed:  2001, c. 8, s. 133.

165 Repealed:  2001, c. 8, s. 134.

166-169 Repealed:  1994, c. 17, s. 117.

170 Repealed:  2001, c. 8, s. 135.

171 Repealed:  2001, c. 8, s. 136.

172 Repealed:  2001, c. 8, s. 137.

Common trust funds authorized

173 (1) Despite this or any other Act, a registered provincial trust corporation and any other registered trust corporation that has capacity to do so may, unless the trust instrument otherwise directs, invest money held by it as a fiduciary, other than deposits, in one or more common trust funds of the trust corporation and, where trust money is held by the trust corporation as a co-trustee, the investment thereof in a common trust fund may only be made by the trust corporation with the consent of its co-trustees.  R.S.O. 1990, c. L.25, s. 173 (1).

Exception

(2) A common trust fund authorized by subsection (1) shall not include any money in relation to a trust established exclusively for savings plans registered under the Income Tax Act (Canada).  R.S.O. 1990, c. L.25, s. 173 (2).

(3)-(11) Repealed:  2001, c. 8, s. 138.

174 Repealed:  2001, c. 8, s. 139.

Trustee, executor, etc.

175 (1) Repealed:  2001, c. 8, s. 140.

Approval of the corporation as executor, etc.

(2) Where a registered trust corporation is authorized to execute the office of executor, administrator, trustee, receiver, liquidator, assignee, guardian or committee, and the Lieutenant Governor in Council approves of the corporation being accepted as a trust corporation for the purposes of the Superior Court of Justice, every court or judge having authority to appoint such an officer may, with the consent of the corporation, appoint the corporation to exercise any of such offices in respect of any estate or person under the authority of such court or judge, or may grant to the corporation probate of any will in which the corporation is named as an executor.  R.S.O. 1990, c. L.25, s. 175 (2); 2006, c. 19, Sched. C, s. 1 (1).

Appointment as trustee

(3) A registered trust corporation approved by the Lieutenant Governor in Council under subsection (2),

(a) may be appointed to be a sole trustee, even though but for this Act it would be necessary to appoint more than one trustee; and

(b) may be appointed to any of the offices mentioned in subsection (2) jointly with another person,

and the appointment may be made whether the trustee is required under a deed, will or document creating a trust or whether the appointment is under the Trustee Act or otherwise.  R.S.O. 1990, c. L.25, s. 175 (3).

Security not required

(4) Despite any rule, practice or statutory provision, it is not necessary for a trust corporation approved under subsection (2) to give any security for the due performance of its duty as executor, administrator, trustee, receiver, liquidator, assignee, guardian or committee unless so ordered by a court.  R.S.O. 1990, c. L.25, s. 175 (4).

Trusts

176 (1) A registered corporation is not what is a trust company to see to the execution of any trust, whether express, implied or constructive, other than a trust to which the corporation is a party, to which any of its deposits are subject.  R.S.O. 1990, c. L.25, s. 176 (1).

Sufficient discharge

(2) The receipt of the person in whose name any deposit stands in the books of the corporation to which subsection (1) applies is a sufficient discharge to the corporation for any payment made in respect thereof, and a direction to transfer, signed by the person in whose name any such deposit stands in the books of the corporation, is sufficient authority to the corporation for any transfer made in respect thereof, despite any trust to which the same may then be subject and whether the corporation has or has not had notice of the trust.  R.S.O. 1990, c. L.25, s. 176 (2).

Application of money paid

(3) A corporation is not bound to see to the application of any money paid upon a receipt under subsection (2).  R.S.O. 1990, c. L.25, s. 176 (3).

176.1 Repealed:  2001, c. 8, s. 141.

176.2Repealed:  2001, c. 8, s. 142.

176.3Repealed:  2001, c. 8, s. 143.

176.4Repealed:  2001, c. 8, s. 144.

176.5Repealed:  2001, c. 8, s. 145.

176.6Repealed:  2001, c. 8, s. 146.

176.7Repealed:  2001, c. 8, s. 147.

176.8Repealed:  2001, c. 8, s. 148.

176.9Repealed:  2001, c. 8, s. 149.

176.10Repealed:  2001, c. 8, s. 150.

PART XI
ADMINISTRATION

177-179 Repealed:  1997, c. 28, s. 151.

Capacity outside Ontario

180 The Chief Executive Officer may, for the purposes of the administration and enforcement of this Act and the regulations, act outside Ontario as if the Chief Executive Officer were acting inside Ontario.  1997, c. 28, s. 152; 2018, c. 8, Sched. 16, s. 5.

Records

181 (1) Records required by this Act to be prepared and maintained by the Chief Executive Officer may be in bound or loose-leaf form or in photographic film form, or may be entered or recorded by any system of mechanical or electronic data processing or by any other information storage device that is capable of reproducing any required information in an accurate and intelligible form within a reasonable time.  R.S.O. 1990, c. L.25, s. 181 (1); 1997, c. 28, s. 153 (1); 2018, c. 8, Sched. 16, s. 5.

(2), (3) Repealed:  1997, c. 28, s. 153 (2).

Power to require evidence

182 (1) In pursuance of his or her duties under this Act, the Chief Executive Officer may require to be made or may take and receive affidavits or depositions and may examine witnesses upon oath or affirmation.  R.S.O. 1990, c. L.25, s. 182 (1); 1997, c. 28, s. 154; 2018, c. 8, Sched. 16, s. 5.

Employment of stenographer

(2) The evidence and proceedings in any matter before the Chief Executive Officer may be reported by a stenographer who has taken an oath or has affirmed before the Chief Executive Officer faithfully to report the same.  R.S.O. 1990, c. L.25, s. 182 (2); 1997, c. 28, s. 154; 2018, c. 8, Sched. 16, s. 5.

183 Repealed:  2001, c. 8, s. 151.

184 Repealed:  2001, c. 8, s. 152.

185 Repealed:  2001, c. 8, s. 153.

186 Repealed:  2001, c. 8, s. 154.

187 Repealed:  2001, c. 8, s. 155.

188 Repealed:  2001, c. 8, s. 156.

Notice as proof

189 (1) A notice published in The Ontario Gazette over the name of the Chief Executive Officer is of its contents proof, in the absence of evidence to the contrary, without further proof.  R.S.O. 1990, c. L.25, s. 189 (1); 2018, c. 8, Sched. 16, s. 5.

(2), (3) Repealed:  1997, c. 28, s. 159.

Agreements with other Governments

190 The Authority, with the approval of the Lieutenant Governor in Council, may enter into agreements with the Government of Canada or of any province or territory in Canada, or the appropriate authority thereof, related to the administration and enforcement of this Act or of comparable legislation of any such other jurisdiction and, without restricting the generality of the foregoing, any such agreement may provide for the provision and exchange of information.  R.S.O. 1990, c. L.25, s. 190; 1997, c. 28, s. 160; 2018, c. 8, Sched. 16, s. 2.

Capacity of Chief Executive Officer

191 (1) The Chief Executive Officer may do all things necessary or incidental to the administration and enforcement of this Act and the regulations and, in particular, but without limiting the generality of the foregoing, may,

(a) Repealed:  2001, c. 8, s. 157.

(b) enter into written agreements with third parties related to the administration of this Act and the regulations and give indemnities to third parties related to such activities as are authorized under such agreements.  R.S.O. 1990, c. L.25, s. 191 (1); 2001, c. 8, s. 157; 2018, c. 8, Sched. 16, s. 5.

(2) Repealed:  1997, c. 28, s. 161.

PART XII
ENFORCEMENT AND CIVIL REMEDIES

Chief Executive Officer’s orders

192 (1) If, in the Chief Executive Officer’s opinion, a corporation or other person is committing any act or pursuing any course of conduct that does not comply with this Act or the regulations, the Chief Executive Officer may give notice to the corporation or person of an intention to order him, her or it,

(a) to cease committing an act or to cease pursuing a course of conduct identified by the Chief Executive Officer; or

(b) to perform such acts as, in the Chief Executive Officer’s opinion, are necessary to remedy the situation.  2001, c. 8, s. 158 (1); 2018, c. 8, Sched. 16, s. 5, 6.

Hearing

(2) The corporation or other person, by written notice served on the Chief Executive Officer within fifteen days after the service of the notice on the corporation or other person under subsection (1), may require a hearing before the Chief Executive Officer.  R.S.O. 1990, c. L.25, s. 192 (2); 1997, c. 28, s. 162; 2018, c. 8, Sched. 16, s. 5.

Temporary order

(3) Despite subsection (2), where in the opinion of the Chief Executive Officer the interests of the depositors or the public may be prejudiced or adversely affected by any delay in the issuance of a permanent order, the Chief Executive Officer may make a temporary order as described in clause (1) (a) or (b) which shall take effect immediately on its making and which shall become permanent on the fifteenth day after its making unless within that time a hearing before the Chief Executive Officer is requested.  R.S.O. 1990, c. L.25, s. 192 (3); 1997, c. 28, s. 162; 2018, c. 8, Sched. 16, s. 5.

When order may be made

(4) Where no hearing is requested within the time set out in subsection (2) or (3), or where a hearing is held and the Chief Executive Officer is of the opinion that an order described in clause (1) (a) or (b) should be made, the Chief Executive Officer may make a permanent order under either of those clauses which shall take effect immediately on its making or at such later date as may be set out in the order.  R.S.O. 1990, c. L.25, s. 192 (4); 1997, c. 28, s. 162; 2018, c. 8, Sched. 16, s. 5.

Hearing

(5) A request for a hearing under subsection (3) shall be in writing and served on the Chief Executive Officer.  R.S.O. 1990, c. L.25, s. 192 (5); 1997, c. 28, s. 162; 2018, c. 8, Sched. 16, s. 5.

Extension of order

(6) Where a hearing is requested under subsection (3), the Chief Executive Officer may extend the temporary order until the hearing is concluded or any appeal from the hearing is concluded and the order is confirmed, varied or revoked.  R.S.O. 1990, c. L.25, s. 192 (6); 1997, c. 28, s. 162; 2018, c. 8, Sched. 16, s. 5.

(7) Repealed:  2001, c. 8, s. 158 (2).

Modification or revocation

(8) The Chief Executive Officer, after giving the corporation or other person named in the order an opportunity to be heard, may modify or revoke an order made under this section.  R.S.O. 1990, c. L.25, s. 192 (8); 1997, c. 28, s. 162; 2018, c. 8, Sched. 16, s. 5.

Appeals

193 (1) A party to a hearing before the Chief Executive Officer under section 192 may, within 15 days after receiving the Chief Executive Officer’s decision, appeal the decision to the Tribunal by serving what is a trust company notice in writing of the appeal on the Chief Executive Officer and filing the notice with the Tribunal.  1997, c. 28, s. 163; 2018, c. 8, Sched. 16, s. 5, 6.

Disposition

(2) An appeal shall be based on the evidence presented to the Tribunal and on hearing an appeal, the Tribunal may confirm, vary or revoke the order that is the subject of the appeal.  1997, c. 28, s. 163.

Chief Executive Officer’s decisions

194 (1) A decision made by the Chief Executive Officer under this Act must be in writing and is not subject to appeal.  2001, c. 8, s. 159; 2018, c. 8, Sched. 16, s. 5.

Exception

(2) Subsection (1) does not apply to an order under section 192.  2001, c. 8, s. 159.

Chief Executive Officer may be party

195 The Chief Executive Officer is entitled to attend and to be represented by counsel at any hearing before the Tribunal.  1997, c. 28, s. 165; 2018, c. 8, Sched. 16, s. 5.

Transcript

196 Oral evidence taken before the Chief Executive Officer or the Tribunal may be recorded and, if recorded, copies of a transcript of it shall be furnished upon request on the same terms and for the same fees as in the Superior Court of Justice.  1997, c. 28, s. 165; 2006, c. 19, Sched. C, s. 1 (1); 2018, c. 8, Sched. 16, s. 5.

Hearing in private

197 A hearing before the Chief Executive Officer or the Tribunal, at the discretion of the Chief Executive Officer or the chair of the Tribunal, as the case may be, may be heard in private or in public.  1997, c. 28, s. 165; 2018, c. 8, Sched. 16, s. 5.

198 Repealed:  2001, c. 8, s. 160.

199 Repealed:  2001, c. 8, s. 161.

200, 201 Repealed:  2001, c. 8, s. 162.

202 Repealed:  2001, c. 8, s. 163.

203 Repealed:  2001, c. 8, s. 164.

204 Repealed:  2001, c. 8, s. 165.

205 Repealed:  2001, c. 8, s. 166.

Investigation

206 (1) Where upon a statement made under oath or affirmation it appears probable to the Chief Executive Officer that any corporation or other person has contravened any of the provisions of this Act or the regulations, the Chief Executive Officer by order may appoint any person to make such investigation as the Chief Executive Officer considers expedient for the due administration and enforcement of this Act, and in the order shall determine and prescribe the scope of the investigation.  R.S.O. 1990, c. L.25, s. 206 (1); 2018, c. 8, Sched. 16, s. 5.

Scope of investigation

(2) For the purpose of any investigation ordered under this section, the person appointed to make the investigation may investigate, inquire into and examine,

(a) the affairs of the person or corporation in respect of whom the investigation is being made and any books, papers, documents, correspondence, communications, negotiations, transactions, investigations, loans, borrowings and payments to, by, on behalf of or in relation to or connected with the corporation or other person and any property, assets or things owned, acquired or alienated in whole or in part by the corporation or other person or by any person or corporation acting on behalf of or as agent for the person or corporation; and

(b) the assets at any time held, the liabilities, debts, undertakings and obligations at any time existing, the financial or other conditions at any time prevailing in or in relation to or in connection with the corporation or other person and the relationship that may at any time exist or have existed between the corporation or other person and any other person by reason of investments, purchases, commissions promised, secured or paid, interests held or acquired, purchase or sale of stock or other property, the transfer, negotiation or holding of stock, interlocking directorates, common control, undue influence or control or any other relationship.  R.S.O. 1990, c. L.25, s. 206 (2).

Powers to summon witnesses and require production

(3) The person making an investigation under this section has the same power to summon and enforce the attendance of witnesses and compel them to give evidence on oath or otherwise, and to produce documents, records and things, as is vested in the Superior Court of Justice for the trial of civil actions, and the failure or refusal of a person to attend, to answer questions or to produce such documents, records and things as are in the person’s custody or possession makes the person liable to be committed for contempt by a judge of the Superior Court of Justice as if in breach of an order or judgment of the Superior Court of Justice and no provision of the Evidence Act exempts any bank or corporation or any officer or employee thereof from the operation of this section.  R.S.O. 1990, c. L.25, s. 206 (3); 2006, c. 19, Sched. C, s. 1 (1).

Counsel

(4) A person giving evidence at an investigation under this section may be represented by counsel.  R.S.O. 1990, c. L.25, s. 206 (4).

Seizure of property

(5) Where an investigation is ordered under this section, the person appointed to make the investigation may seize and take possession of any documents, records, securities or other property of the corporation or other person whose affairs are being investigated.  R.S.O. 1990, c. L.25, s. 206 (5).

Inspection of seized documents

(6) Where any documents, records, securities or other property are seized under subsection (5), the documents, records, securities or other property shall be made available for inspection and copying by the corporation or other person from whom seized at a mutually convenient time and place if a request for an opportunity to inspect or copy is made by the person or corporation to the person appointed to make the investigation.  R.S.O. 1990, c. L.25, s. 206 (6).

Accountants and experts

(7) Where an investigation is ordered under this section, the Chief Executive Officer may appoint an accountant or other expert to examine documents, records, property and matters of the person or corporation whose affairs are being investigated.  R.S.O. 1990, c. L.25, s. 206 (7); 2018, c. 8, Sched. 16, s. 5.

Reports of investigation

(8) Every person appointed under subsection (1) or (7) shall provide the Chief Executive Officer with a full and complete report of the investigation including any transcript of evidence and material in his or her possession relating to the investigation.  R.S.O. 1990, c. L.25, s. 206 (8); 2018, c. 8, Sched. 16, s. 5.

Protection from personal liability

207 No action or other proceeding for damages shall be instituted against a person appointed under subsection 206 (1) or (7) for any act done in good faith in the execution or intended execution of the person’s duty or for any alleged neglect or default in the execution in good faith of the person’s duty.  R.S.O. 1990, c. L.25, s. 207.

Order to freeze property

208 (1) In the circumstances described in subsection (1.1), the Chief Executive Officer may direct any corporation or other person who has funds, securities or assets of a corporation or person described in clause (1.1) (a) or (b) on deposit, under control or for safekeeping to do any of the following things:

1. To hold the funds, securities or assets.

2. To direct the corporation or person described in clause (1.1) (a) or (b)  to refrain from withdrawing funds, securities or assets from, or dealing with funds, securities or assets with, any other person who has any of them on deposit, under control or for safekeeping.

3. To direct the corporation or person described in clause (1.1) (a) or (b) to hold all funds, securities or assets in his, her or its possession or control in trust for the Chief Executive Officer.  2001, c. 8, s. 167 (1); 2018, c. 8, Sched. 16, s. 5.

Same

(1.1) The Chief Executive Officer may give the direction described in subsection (1),

(a) if the Chief Executive Officer is about to order an investigation in respect of a corporation or other person under section 206, or during or after such an investigation; or

(b) if proceedings in respect of a contravention of this Act or the regulations are about to be, or have been, instituted against a corporation or other person and if, in the opinion of the Chief Executive Officer, the proceedings are connected with or arise out of any business conducted by the corporation or person.  2001, c. 8, s. 167 (1); 2018, c. 8, Sched. 16, s. 5.

Same

(1.2) A direction described in subsection (1) must be given by a method that provides for a written or printed copy.  2001, c. 8, s. 167 (1).

Idem

(2) A direction issued under subsection (1) does not apply to funds or securities in a stock exchange clearing house or to securities in process of transfer by a transfer agent unless the direction expressly so states and in the case of a bank or a corporation, the direction applies only to the offices, branches or agencies thereof named in the direction.  R.S.O. 1990, c. L.25, s. 208 (2).

Application for directions

(3) Any person or corporation named in a direction issued under subsection (1), if in doubt as to the application of the direction to particular funds, securities or assets, may apply to the Chief Executive Officer for an order of clarification.  R.S.O. 1990, c. L.25, s. 208 (3); 2018, c. 8, Sched. 16, s. 5.

Revocation or amendment of direction

(4) Upon the application of a registered corporation or other person directly affected by a direction issued under subsection (1), the Chief Executive Officer may make an order on such terms and conditions as he or she may impose revoking the direction or consenting to the release of any fund or security.  R.S.O. 1990, c. L.25, s. 208 (4); 2018, c. 8, Sched. 16, s. 5.

Notice to land registry offices

(5) In any of the circumstances mentioned in subsection (1.1), the Chief Executive Officer may by any method that provides a written or printed copy notify any land registrar that proceedings are being or are about to be taken that may affect land belonging to the corporation or other person referred to in the notice, and the land registrar shall register the notice against the title of the land.  R.S.O. 1990, c. L.25, s. 208 (5); 2001, c. 8, s. 167 (2); 2018, c. 8, Sched. 16, s. 5.

Idem

(6) A notice registered under subsection (5) has the glenview state bank review effect as the registration of a certificate of pending litigation or a caution, and the Chief Executive Officer may in writing revoke or modify the notice.  R.S.O. 1990, c. L.25, s. 208 (6); 2018, c. 8, Sched. 16, s. 5.

209 Repealed:  2001, c. 8, s. 168.

210 Repealed:  2001, c. 8, s. 169.

211 Repealed:  2001, c. 8, s. 170.

212 Repealed:  2001, c. 8, s. 171.

PART XIII
OFFENCES AND PENALTIES

Carrying on business of corporation prohibited

213 (1) No person, other than a registered corporation, shall conduct, undertake or transact in Ontario the business of a loan corporation or of a trust corporation.  R.S.O. 1990, c. L.25, s. 213 (1).

Acting as trustee, etc., prohibited

(2) No body corporate, other than a registered trust corporation, shall,

(a) offer its services to the public as, or accept or execute the office of,

(i) executor or administrator, or

(ii) guardian of property; or

(b) act as a trustee in respect of any service it provides to the public.  R.S.O. 1990, c. L.25, s. 213 (2); 1996, c. 2, s. 70 (2).

Exception

(3) Clause (2) (b) does not apply to,

(a) a body corporate that is acting as a trustee as provided under Part V of the Business Corporations Act or as required by any other Act; or

(b) a body corporate that manages a mutual fund trust and that is approved by the Ontario Securities Commission to act as the trustee of the mutual fund trust.  R.S.O. 1990, c. L.25, s. 213 (3).

Same

(3.1) Clause (2) (b) does not apply to preclude a credit union or league, as defined by the Credit Unions and Caisses Populaires Act, 1994 from acting as a trustee and maintaining trust funds.  1994, c. 11, s. 390.

Note: On a day to be named by proclamation of the Lieutenant Governor, subsection 213 (3.1) of the Act is amended by striking out “league, as defined by the Credit Unions and Caisses Populaires Act, 1994” and substituting “central, as defined by the Credit Unions and Caisses Populaires Act, 2020”. (See: 2020, c. 36, Sched. 7, s. 318 (3))

Restriction on use of name

(4) No person, other than a registered trust corporation, shall hold itself out to the public in Ontario as a registered trust corporation by using in its name the words “trust corporation”, “trust company”, “trustco”, “société de fiducie” ou “compagnie de fiducie” or any similar words in its name in conjunction with its business or undertakings, unless such name was legally in use before the 5th day of April, 1988.  R.S.O. 1990, c. L.25, s. 213 (4).

Carrying what is a trust company business by corporations

(5) No corporation, other than a registered corporation, shall hold itself out to the public in Ontario as a registered corporation by conducting, undertaking or transacting any part or aspect of the business of a trust corporation or loan corporation.  R.S.O. 1990, c. L.25, s. 213 (5).

Soliciting business

(6) No person, other than a registered corporation and a person duly authorized by it to act on its behalf, shall solicit the business of a trust corporation or loan corporation.  R.S.O. 1990, c. L.25, s. 213 (6).

Action of promoters, etc.

(7) No person shall undertake, transact or solicit in Ontario any part or aspect of the business of a trust corporation or a loan corporation for a body corporate that is not registered under this Act.  R.S.O. 1990, c. L.25, s. 213 (7).

(8) Repealed:  2001, c. 8, s. 172.

Offences

214 (1) A person is guilty of an offence if the person,

(a) contravenes any provision of section 213; or

(b) knowingly provides false information in relation to any matter under this Act.  2001, c. 8, s. 173 (1).

Penalty

(2) On conviction for an offence referred to in subsection (1), the person convicted is liable on a first conviction to a fine of not more than $100,000 and on each subsequent conviction to a fine of not more than $200,000.  R.S.O. 1990, c. L.25, s. 214 (2); 2001, c. 8, s. 173 (2).

Derivative

(3) Every person who caused, authorized, permitted or participated in an offence referred to in subsection (1) is guilty of an offence and on conviction is liable on a first conviction to a fine of not more than $100,000 and on each subsequent conviction to a fine of not more than $200,000.  R.S.O. 1990, c. L.25, s. 214 (3); 2001, c. 8, s. 173 (3).

(4), (5) Repealed:  2001, c. 8, s. 173 (4).

Limitation period

215 No proceeding for an offence under this Part shall be commenced in any court more than two years after the facts upon which the proceedings are based first came to the knowledge of the Chief Executive Officer.  R.S.O. 1990, c. L.25, s. 215; 2018, c. 8, Sched. 16, s. 5.

Order to comply

216 Where a person is convicted of an offence under this Act or the regulations, the court in which proceedings in respect of the offence are taken, in addition to any punishment it may impose, may order that person to comply with the provisions of this Act or the regulations for the contravention of which the person has been convicted.  R.S.O. 1990, c. L.25, s. 216.

Restitution

217 Where a person is convicted of an offence under this Act, the court making the conviction may, in addition to any other penalty, order the person convicted to make compensation or restitution in relation thereto.  R.S.O. 1990, c. L.25, s. 217.

PART XIV
MISCELLANEOUS AND REGULATIONS

218-220 Repealed:  2001, c. 8, s. 174.

221 Repealed:  2001, c. 8, s. 175.

Delivery of notices

222 (1) Delivery of any written notice or document for any purpose of this Act, where the mode is not otherwise specified, may be delivered by first class ordinary mail or first class registered mail,

(a) in the case of a registered corporation, addressed to it or the chief executive officer of the corporation at its principal place of business in Ontario;

(b) in the case of a director, addressed to the director at his or her address as shown on the records of the Chief Executive Officer; and

(c) in the case of the Chief Executive Officer, addressed to the Chief Executive Officer at his or her office.  R.S.O. 1990, c. L.25, s. 222 (1); 2001, c. 8, s. 176 (1); 2018, c. 8, Sched. 16, s. 3, 5.

(2) Repealed:  2001, c. 8, s. 176 (2).

Regulations

223 (1) The Lieutenant Governor in Council may make regulations,

(a) prescribing prohibited words or expressions for the purpose of subsection 213 (4);

(b) prescribing the information that must be maintained in the Loan Corporations Register and the Trust Corporations Register;

(c) prescribing any matter referred to in this Act as being prescribed by the regulations.  2001, c. 8, s. 177.

Same

(2) A regulation made under this Act may,

(a) prescribe classes of registered corporations;

(b) contain different provisions for different registered corporations or different classes of registered corporations; and

(c) apply only to specified registered corporations or specified classes of registered corporations.  1994, c. 17, s. 119 (4).

223.0.1 Repealed: 2020, c. 36, Sched. 14, s. 9 (2).

Forms

223.1 (1) The Chief Executive Officer may approve the use of forms for any purpose of this Act and the forms may provide for such information to be furnished as the Chief Executive Officer may require.  1997, c. 19, s. 13 (18); 1999, c. 12, Sched. I, s. 5 (3); 2018, c. 8, Sched. 16, s. 5.

Fees

(2) The Minister of Finance may establish and charge fees in relation to any matter under this Act, including any services provided by or through the Ministry of Finance.  2001, c. 8, s. 178; 2020, c. 36, Sched. 14, s. 9 (3).

Note: On a day to be named by proclamation of the Lieutenant Governor, subsection 223.1 (2) of the Act is repealed. (See: 2015, c. 20, Sched. 21, s. 1)

(3) Repealed:  2001, c. 8, s. 178.

224 Repealed:  2001, c. 8, s. 179.

Note: On a day to be named by proclamation of the Lieutenant Governor, the Act is amended by adding the following section: (See: 2015, c. 20, Sched. 21, s. 2)

Fees

224 The Minister of Finance may make regulations governing fees under this Act, including,

(a) requiring the payment of fees in relation to any matter under this Act, including any services provided by or through the Ministry of Finance or the Financial Services Commission of Ontario;

Note: On the day section 2 of Schedule 21 to the Building Ontario Up Act (Budget Measures), 2015 comes into force, clause 224 (a) of the Act is amended by striking out “or the Financial Services Commission of Ontario”. (See: 2020, c. 36, Sched. 14, s. 9 (4))

(b) prescribing the amount of fees or the manner of determining fees;

(c) prescribing the manner in which and the period within which fees must be paid. 2015, c. 20, Sched. 21, s. 2.

225 Repealed:  2001, c. 8, s. 179.

226 Repealed:  2001, c. 8, s. 180.

227 Repealed:  2001, c. 8, s. 181.

228 Repealed:  2001, c. 8, s. 182.

______________

Français

Источник: https://www.ontario.ca/laws/statute/90l25

Marcia Hultman

Trust Companies

Documents referenced below are available in Adobe PDF format unless otherwise noted.

Types of Trust Companies

Listing of Trust Companies Licensed to Do Business in South Dakota

Fiduciary and Related Services Report Instructions

Trust Company Information Packet

Processing of Applications

Trust Company Applications and Notices

Annual Report Forms

Miscellaneous Trust Company Forms

Change in Management, Officers and Key Employees

Trust Company Requirements

Summary of Key Statutory Requirements

Financial Institution Tax

Supervisory Guidance

Legislative Updates and Memorandums

Governor's Task Force on Trust Administration Review and Reform

Contact Information

 

Types of Trust Companies

Public

A public trust company resembles a traditional bank trust department or trust company with the defining factor being the solicitation and acceptance of public accounts. For specific statutory information regarding the definition of a Public Trust company, please refer to South Dakota Codified Law (SDCL) 51A-6A-1(12A).

Private

Private trust companies limit activities to the management of private assets, usually for the benefit of a single family lineage. For the definition of a private trust company as set forth by the Banking Commission, please refer to Administrative Rule of South Dakota (ARSD) 20:07:22:03.

back to top

 

Processing of Applications

If the Division determines there are material errors or omissions in a trust company application, the Division will notify the applicant within 30 days of receipt of the application.

If an application is complete and contains no material errors or omissions, the Division will submit notice for publication pursuant to South Dakota Codified Law (SDCL) 51A-6A-4 and SDCL 51A-2-16 no later than 60 days after receipt of the application.

 

Trust Company Applications and Notices

Please download and open these documents and forms in an Adobe Acrobat to view and complete.

Charter Application and Instructions

Interstate Trust Application

Intrastate Trust Application

Oath of Board Members

Change in Control Notice

Change of Name Notice

Change of Address Application

Charter Surrender Application

Special Purpose Entity Notice

-back to top-

 

Annual Report Forms

According to SDCL 51A-6A-34, trust companies are required to provide an annual report to the Director of Banking. In an effort to control costs and improve what is a trust company, the forms are available below in Adobe PDF format (unless otherwise noted). The completed reports, signature pages and fee must be submitted to the Division of Banking no later than January 30. Trust companies created as limited liability companies are required to file an Oath of Managers for directorate members; all comcast internet essentials pay bill trust company entities are required to file an Oath of Directors for directorate members. Once appointed, directors and mangers are not required to complete an oath each year, but must submit a copy of their original oath with the annual report.

Please download and open these documents and forms in an Adobe Acrobat to view and complete.

List of Owners

List of Officers and Employees

List of Board Members

List of Entities

Oath of Board Members

See ARSD 20:07:22:01 - Fee Calculation.

Supervisory Fee Calculator

-back to top-

 

Miscellaneous Trust Company Forms

ACH Authorization Form

Pledge Escrow Agreement

 

Change in Management, Officers and Key Employees

Criminal background investigation, credit reports and litigation reports are required for new hires of existing South Dakota chartered trust companies. Pursuant to SDCL 51A-6A-17, an independent criminal background investigation, independent credit report and litigation report must be submitted for each new hire. New hires are defined as owners, board members, officers and outer banks jet ski rental employees.

Criminal background investigations for public trust company individuals will be performed via fingerprints on cards provided by the Division; two fingerprint cards, one for the Federal Bureau of Investigation and one for the South Dakota Division of Criminal Investigation, must be submitted along with a check made payable to the “South Dakota Division of Criminal Investigation” for $43.25 for each individual receiving the background check.

Criminal background investigation for private trust company individuals require only a name-based criminal background investigation performed by an independent third party, in addition to a credit report and litigation report. For both public trust companies and private trust companies, litigation reports may be provided as a third party report (preferred) or by way of a sworn affidavit if sufficiently detailed. All trust companies are required to immediately notify the Division of any material change to the background of any individual that would otherwise be subject to this process. All costs associated with these processes are to be paid by the applicant or trust company as applicable.

A Biographical and Financial Report (available below) for each new hire must be completed and submitted with the required background information.

Biographical and Financial Report

Background Attestation

-back to top-

 

Trust Company Requirements

Summary of Key Statutory Requirements

Trust companies are encouraged to thoroughly review SDCL Chapter 51A-6A and Title 55, which pertain to the creation and administration of a South Dakota trust company and address trust law in South Dakota. Sections of note include:

  • The capitalization of a trust company shall not be less than $200,000 pursuant to SDCL 51A-6A-19.
  • A fidelity bond and director's and officer's liability insurance policy coverage of at least $1,000,000 each are required pursuant to SDCL 51A-6A-19.
  • A deposit pledged to the Division shall not be less than $100,000 pursuant to SDCL 51A-6A-19.
  • A South Dakota-chartered trust company is subject to an annual supervisory fee computed at the rate of seven cents per $10,000 of total trust assets under management, administration, or custody as reported as of the end of December. The minimum annual fee is $3,750 and the maximum annual fee is $20,000 for private trust companies, while the minimum annual fee is $4,500 and the maximum annual fee is $30,000 for public trust companies. In addition, trust companies shall pay the actual cost for each on-site examination and the additional supervision costs for any trust company operating under an enforcement action. These fees are pursuant to ARSD 20:07:22:01.
  • SDCL 51A-06A-11.1, SDCL 51A-6A-11.2, and SDCL 51A-6A-11.3 establishes jurisdiction criteria needed to establish South Dakota situs. 

 

Public Trust Company Mandates

Private Trust Company Mandates

Trust Company Examination Procedures

 

-back to top-

 

Financial Institution Tax

South Dakota chartered trust companies are defined as a financial institution pursuant SDCL 10-43-1, which imposes a net-income-based tax on South Dakota sitused financial institutions. However, SDCL 10-43-90 imposes a minimum financial institution tax on South Dakota chartered trust companies. The minimum financial institution tax applied to South Dakota chartered trust companies is tiered over the first five years of operation. The annual minimum tax is $500 for fewer than 12 months of operation; $2,000 for over 12 months but less than 24 months of operation; $5,000 for over 24 months but less than 36 months of operation; $10,000 for over 36 months but fewer than 48 months of operation; and $25,000 annually after 48 months.

-back to top-

 

Supervisory Guidance

The following guidance is generally derived from best business practices utilized live tv app xbox one South Dakota-regulated financial institutions to mitigate business and fiduciary risks. The examination process is structured to assess each institution’s risk management processes and to assist management in addressing any areas of identified weaknesses.  Examination observations regularly reference supervisory guidance to provide management with examples of sound risk management practices and to assist with corresponding risk mitigation.  While examinations do not cite violations of supervisory guidance, deviations from the guidance could heighten the institution’s overall risk profile which may negatively impact regulatory assessments.  Please note that the supervisory guidance is general in nature and designed to assist management with developing a comprehensive risk management program.  Therefore, the guidance should be modified as needed to correspond with each institution’s unique business model.    

Account-Level Administrative Review Guidance

Account-Level Investment Review Guidance

Bank Secrecy Act Guidance

Customer Identification Guidance

Due Diligence Review Guidance

Foreign Trust Acceptance and Oversight Guidance

Foreign Trust Taxation and Reporting Guidance

Internal Audit Guidance

Interstate Trust Guidance

Investment Policy Guidance

Pooled Investment Guidance

Real Estate Oversight Guidance

Regulation R Guidance

Statement of Principles of Trust Management

Statement of Principles of Trust Management - Custodial

Written Policies and Procedures Guidance

-back to top-

 

Legislative Updates and Memorandums

10-001 Situs Clarification (November 20, 2001)

10-002 Regulation R (July 9, 2010)

10-003 Bank Secrecy Act (June 6, 2011)

10-004 Interstate Trust Guidance (April 3, 2015)

10-005 Interstate Trust Guidance Addendum (October 13, 2015)

10-006 Office Space Reminder (June 30, 2017)

10-007 Pandemic Planning (March 23, 2020)

10-008 FinCEN Final Rule dated September 15, 2020 (January 5, 2021)

20-002 New Trust Legislation (June 6, 2008)

20-004 New Trust Legislation (April 26, 2007)

20-005 New Trust Legislation (June 12, 2009)

20-007 New Trust Legislation (June 8, 2010)

20-008 New Trust Legislation (June 23, 2011)

20-009 What is a trust company Trust Legislation (June 8, 2012)

20-010 New Trust Legislation (October 22, 2012)

20-011 New Trust Legislation (June 10, 2013)

20-012 New Trust Legislation (June 12, 2014)

20-013 Situs Reminder (June 12, 2014)

20-014 New Trust Legislation (June 19, 2015)

20-015 New Trust Legislation (July 8, 2016)

20-021 New Trust Legislation (June 30, 2017)

20-023 New Trust Legislation (June 15, 2018)

20-024 New Trust Legislation (June 19, 2019)

20-027 New Trust Legislation (June 3, 2020)

back to top

 

Contact Information

If you cannot find the information you are looking for regarding trust companies, charters or complaints specific to the trust arena in the information above, please contact the Division of Banking.

Источник: https://dlr.sd.gov/banking/trusts/default.aspx

: What is a trust company

Condo and townhouses for sale near me
What is a trust company
HOMER SIMPSON DO IT FOR HER
What is a trust company
what is a trust company

What is a trust company -

A bank trust company is a corporation that acts as an agent, fiduciary, or trustee. It is a trust company within a bank. Almost every city has a bank trust company.

Examples of a bank trust company are CoAmerica, JP Morgan Trust Company, SunTrust, and Frost Trust Company.

The term “bank” usually refers to those institutions dealing strictly with deposits, and loans. A trust company is a corporate trustee that can be tied or not tied to a bank and just offers trustee services.

What Is a Trust?

A trust:

  1. Owns assets of any type for other people and has a ton of power.
  2. Is created under your Will and/or created while you are alive.
  3. Is as simple as tying your shoelaces OR as complex as explaining the money multiplier banking system to a teenager.
  4. Can control future family behavior. Delicate balance.
  5. Needs to provide unflappable yet flexible guidance.

People think that only the super-rich have trust funds, that is not the case. Creating a trust fund can be a great way to safe guard assets for future generations.

A trust agreement or  document assigns the rules on how the trust will operate for all parties involved. The objective of a trust rests on the needs of particular family’s situation.

Generally, the purpose of the trust would be to reduce estate tax, keep assets out of probate, and decide how future generations will enjoy the wealth owned by the trust.

What Services Does a Bank Trust Company Offer?

A bank trust company typically specializes in two services trust administration and investment management.

Most bank trust companies will offer Executor services as well. A  bank trust company performing  trust administration will generally provide reasonable customized solutions which differs by case.

The duties of trust administration outlined by the trust document includes:

  1. Distributions: Following the intent of the grantor (person who funded the trust) for when, why, and how beneficiaries should receive distributions.  The hardest part of any bank trust company duties.
  2. Taxes: Filing the trust tax return with Federal and State tax authorities and doing tax compliance.  A bank trust company does not do any tax planning.  They don’t mention that and people don’t realize that.  Better to pay a CPA to do the tax planning and tax compliance for a trust tax return.
  3. Fiduciary Role: Can act as the sole trustee or as a co-trustee with individuals.  Very important not to have Co-Trustees agree on distributions and investments as then a stalemate exists and nothing gets done.  Individual co-trustees work best for providing guidance and perspective on distributions and keeping the bank trust company in line with client service etc.
  4. Investments: A bank trust company will invest trust assets either in stocks, bonds, mutual funds, ETFs and/or handle unique assets owned by the trust (e.g. real estate, businesses etc.)

What Fees Does a Bank Trust Company Charge?

Any bank trust company or department will have two fees that you will see: Investment management and trust administration.

You will not see the costs of the back-office trust operations group nor the extra bells and whistles the bank trust company spends on marketing and client educational services. Individuals decide what they want to pay for and when, in that case.

If you want the unique and white glove service, then the perfect option would be a well-known bank trust company such as Bessesmer Trust, JP Morgan Trust Company or Northern Trust.

If you want bare bones and cost efficient then seek a local bank trust company. Anybody can learn how to negotiate cost-efficient trustee fees.

How to Choose a Bank Trust Company

Individuals get frustrated choosing a bank trust company because there are so many options. As a result, it's easiest to just use the bank trust department where you might have assets already.

However, it is important to understand that may not be the best option for your specific needs.

Bank trust departments are one of the oldest areas of a traditional bank. Other than their fees, look at the "DNA" of the bank trust company you might choose.

Are they innovative? Are they easy to use? Will they make your life and your future generations life easier?

These are just a few of the questions you should ask.  The right answer should be based on what you want — not what they want you to want.

For more steps on how to pick a corporate trustee, check out this blog.

Learn How to Pick a Trustee

Источник: https://www.wealthadvisorstrust.com/blog/bank-trust-company

Loan and Trust Corporations Act, R.S.O. 1990, c. L.25

Français

Loan and Trust Corporations Act

R.S.O. 1990, CHAPTER L.25

Consolidation Period:  From December 8, 2020 to the e-Laws currency date.

CONTENTS

PART I
INTERPRETATION AND APPLICATION

1.

Definitions

3.

Application of Act

4.

Non-application of Act

PART IV
REGISTRATION

30.

Registration

31.

Application for registration

31.1

Conditions to registration

36.

Revocation on request

37.

Revocation of registration, federal corporations

PART X
BUSINESS AND INVESTMENTS

155.

Status of money received as a deposit

173.

Common trust funds authorized

175.

Trustee, executor, etc.

176.

Trusts

PART XI
ADMINISTRATION

180.

Capacity outside Ontario

181.

Records

182.

Power to require evidence

189.

Notice as proof

190.

Agreements with other Governments

191.

Capacity of Chief Executive Officer

PART XII
ENFORCEMENT AND CIVIL REMEDIES

192.

Chief Executive Officer’s orders

193.

Appeals

194.

Chief Executive Officer’s decisions

195.

Chief Executive Officer may be party

196.

Transcript

197.

Hearing in private

206.

Investigation

207.

Protection from personal liability

208.

Order to freeze property

PART XIII
OFFENCES AND PENALTIES

213.

Carrying on business of corporation prohibited

214.

Offences

215.

Limitation period

216.

Order to comply

217.

Restitution

PART XIV
MISCELLANEOUS AND REGULATIONS

222.

Delivery of notices

223.

Regulations

223.1

Forms

224.

Fees

Part i
Interpretation and application

Definitions

1 In this Act,

“Authority” means the Financial Services Regulatory Authority of Ontario continued under subsection 2 (1) of the Financial Services Regulatory Authority of Ontario Act, 2016; (“Autorité”)

“bank” means a bank or authorized foreign bank within the meaning of section 2 of the Bank Act (Canada); (“banque”)

“body corporate” means any body corporate with or without share capital and wherever or however incorporated; (“personne morale”)

“capital base” means the shareholders’ equity of a corporation calculated in the prescribed manner; (“apport en capital”)

“Chief Executive Officer” means the Chief Executive Officer appointed under subsection 10 (2) of the Financial Services Regulatory Authority of Ontario Act, 2016; (“directeur général”)

“common trust fund” means a fund maintained by a trust corporation in which money belonging to various estates and trusts in its care are combined for the purpose of facilitating investment; (“fonds en fiducie collectif”)

“corporation” means a loan corporation or a trust corporation; (“société”)

“deposit” means, in relation to a registered corporation, money received by it that is repayable on demand or after notice or that is repayable upon the expiry of a fixed term; (“dépôt”)

“depositor” means a person who has a deposit in a corporation; (“déposant”)

“loan corporation” means a body corporate incorporated or operated for the purpose of borrowing money from the public by receiving deposits and lending or investing such money but does not include a bank, an insurance corporation, a trust corporation, a credit union, caisse populaire or league under the Credit Unions and Caisses Populaires Act, 1994 or a retail association under the Cooperative Credit Associations Act (Canada); (“société de prêt”)

Note: On a day to be named by proclamation of the Lieutenant Governor, the definition of “loan corporation” in section 1 of the Act is amended by striking out “caisse populaire or league under the Credit Unions and Caisses Populaires Act, 1994” and substituting “or central under the Credit Unions and Caisses Populaires Act, 2020”. (See: 2020, c. 36, Sched. 7, s. 318 (1))

“prescribed” means prescribed by the regulations; (“prescrit”)

“real estate” includes messuages, lands, rents and hereditaments, whether freehold or of any other tenure, and whether corporeal or incorporeal, and leasehold estates, and any undivided share thereof, and any estate, right or interest therein but does not include hydrocarbons, minerals or aggregates in or under the ground; (“biens immeubles”)

“registered corporation” means a corporation registered under this Act; (“société inscrite”)

“regulations” means the regulations made under this Act; (“règlements”)

“Tribunal” means the Financial Services Tribunal continued under the Financial Services Tribunal Act, 2017; (“Tribunal”)

“trust corporation” means a body corporate incorporated or operated,

(a) for the purpose of offering its services to the public to act as trustee, bailee, agent, executor, administrator, receiver, liquidator, assignee, guardian of property or attorney under a power of attorney for property, and

(b) for the purpose of receiving deposits from the public and of lending or investing such deposits; (“société de fiducie”)

“voting share” means any share of any class of shares of a body corporate carrying voting rights under all circumstances and any share of any class of shares carrying voting rights by reason of the occurrence of any contingency that has occurred and is continuing. (“action assortie du droit de vote”)  R.S.O. 1990, c. L.25, s. 1; 1992, c. 32, s. 19; 1996, c. 2, s. 70 (1); 1994, c. 17, s. 103; 1997, c. 19, s 13 (1); 1997, c. 28, s. 149; 1999, c. 6, s. 34 (1, 2); 2001, c. 8, s. 52; 2004, c. 8, s. 46; 2004, c. 31, Sched. 23, s. 1; 2005, c. 5, s. 38 (1-3); 2017, c. 34, Sched. 17, s. 23; 2018, c. 8, Sched. 16, s. 1; 2020, c. 36, Sched. 14, s. 9 (1).

2 Repealed:  2001, c. 8, s. 53.

Application of Act

3 This Act applies to all corporations.  2001, c. 8, s. 54.

Non-application of Act

4 This Act does not apply to a body corporate that is authorized, constituted or operated for the purpose of lending money on the security of real estate or for the purpose of investing money in mortgages, where the body corporate borrows only by way of,

(a) loans from banks, corporations, insurance companies or credit unions or caisses populaires incorporated or registered under the Credit Unions and Caisses Populaires Act; or

Note: On a day to be named by proclamation of the Lieutenant Governor, clause 4 (a) of the Act is amended by striking out “or caisses populaires incorporated or registered under the Credit Unions and Caisses Populaires Act” and substituting “within the meaning of the Credit Unions and Caisses Populaires Act, 2020”. (See: 2020, c. 36, Sched. 7, s. 318 (2))

(b) the issue of debentures, notes or like obligations of an amount not less than $100,000 each to any one person on the person’s account, whereby the body corporate is not obligated or cannot by demand of the holder be obligated to repay the money secured by the debenture, note or obligation within five years from the date of its issue.  R.S.O. 1990, c. L.25, s. 4.

5 Repealed:  2001, c. 8, s. 55.

6 Repealed:  2001, c. 8, s. 56.

7 Repealed:  2001, c. 8, s. 57.

8, 9 Repealed:  2001, c. 8, s. 58.

10 Repealed:  2001, c. 8, s. 59.

11-13 Repealed:  2001, c. 8, s. 60.

14, 15 Repealed:  2001, c. 8, s. 61.

16 Repealed:  2001, c. 8, s. 62.

17, 18 Repealed:  2001, c. 8, s. 63.

19-28 Repealed:  2001, c. 8, s. 64.

29 Repealed:  2001, c. 8, s. 65.

29.1Repealed:  2001, c. 8, s. 66.

PART IV
REGISTRATION

Registration

30 (1) The duty of determining, distinguishing and registering the corporations that under this Act are required to be registered and may be acceptable for registration, and of granting registration accordingly, is upon the Chief Executive Officer.  R.S.O. 1990, c. L.25, s. 30 (1); 2018, c. 8, Sched. 16, s. 5.

Registers continued

(2) The registers known in English as the Loan Corporations Register and the Trust Corporations Register and in French as Registre des compagnies de prêt and Registre des compagnies de fiducie respectively are continued under the names Loan Corporations Register and Trust Corporations Register in English and Registre des sociétés de prêt and Registre des sociétés de fiducie in French respectively.  R.S.O. 1990, c. L.25, s. 30 (2).

Duty to keep registers

(3) The Chief Executive Officer shall keep the registers and shall record the following information in the register indicated:

1. In the Loan Corporations Register, the name of each loan corporation that has been granted registration and such other particulars as may be prescribed.

2. In the Trust Corporations Register, the name of each trust corporation that has been granted registration and such other particulars as may be prescribed.  2001, c. 8, s. 67 (1); 2018, c. 8, Sched. 16, s. 5.

Idem

(4) A corporation may be registered in either the Loan Corporations Register or the Trust Corporations Register.  R.S.O. 1990, c. L.25, s. 30 (4).

Idem

(5) The Chief Executive Officer shall note in the appropriate register,

(a) Repealed: 2001, c. 8, s. 67 (2).

(b) the fact that the registration of a corporation has been revoked;

(c) the fact that a registered loan corporation has been continued as a registered trust corporation or vice versa.  R.S.O. 1990, c. L.25, s. 30 (5); 2001, c. 8, s. 67 (2); 2018, c. 8, Sched. 16, s. 5.

Application for registration

31 (1) A corporation incorporated under the Trust and Loan Companies Act (Canada) may apply for initial registration as a loan corporation or as a trust corporation.  2001, c. 8, s. 68 (1).

Change

(2) A registered loan corporation may apply to change its registration to that of a trust corporation and a registered trust corporation may apply to change its registration to that of a loan corporation.  R.S.O. 1990, c. L.25, s. 31 (2).

(3) Repealed:  2001, c. 8, s. 68 (2).

(4) Repealed:  2001, c. 8, s. 68 (3).

Material to be furnished

(5) An application for registration shall follow the form approved by the Chief Executive Officer and shall be filed with the Chief Executive Officer together with such information, material and evidence as the form may specify.  R.S.O. 1990, c. L.25, s. 31 (5); 1997, c. 19, s. 13 (2); 1999, c. 12, Sched. I, s. 5 (3); 2018, c. 8, Sched. 16, s. 5.

Notice, additional information

(6) Where the Chief Executive Officer receives an application for the registration, the Chief Executive Officer may require notice of the application, containing such information as the Chief Executive Officer may require, to be published by the applicant in The Ontario Gazette and in a newspaper having general circulation in the locality in Ontario where the principal place of business of the corporation is located or is to be located.  R.S.O. 1990, c. L.25, s. 31 (6); 2001, c. 8, s. 68 (4); 2018, c. 8, Sched. 16, s. 5.

(7)-(9) Repealed:  2001, c. 8, s. 68 (5).

Conditions to registration

31.1 (1) A corporation that applies for registration under section 31 is entitled to be registered if the corporation has the authority to carry on business under the Trust and Loan Companies Act (Canada) and if the corporation meets the requirements described in subsection 31 (5).  2001, c. 8, s. 69.

Same, trust corporations

(2) No corporation shall be registered as a trust corporation unless the corporation is authorized to act as a trustee under the Trust and Loan Companies Act (Canada).  2001, c. 8, s. 69.

32 Repealed:  2001, c. 8, s. 70 (2).

33, 34 Repealed:  2001, c. 8, s. 71.

35 Repealed:  2001, c. 8, s. 72 (2).

Revocation on request

36 The Chief Executive Officer may revoke the registration of a registered corporation at the request of the corporation.  2001, c. 8, s. 73; 2018, c. 8, Sched. 16, s. 5.

Revocation of registration, federal corporations

37 (1) The registration of a corporation is revoked if the corporation receives notice that its authorization to carry on business under the Trust and Loan Companies Act (Canada) is revoked.  2001, c. 8, s. 74.

Effect of revocation

(2) When the registration of a corporation is revoked under subsection (1), the corporation shall cease to transact or undertake business in Ontario, except to the extent necessary to wind up its business in Ontario.  2001, c. 8, s. 74.

Same

(3) Subsection (2) does not apply if the corporation becomes registered again under this Act.  2001, c. 8, s. 74.

Same, liability

(4) Any liability incurred by the corporation after its registration is revoked may be enforced against it as if its registration had not been revoked.  2001, c. 8, s. 74.

38 Repealed:  2010, c. 26, Sched. 11, s. 1.

39 Repealed:  1997, c. 19, s. 13 (3).

40-49 Repealed:  2001, c. 8, s. 76.

50 Repealed:  2001, c. 8, s. 76.

51 Repealed:  2001, c. 8, s. 76.

52 Repealed:  2001, c. 8, s. 77.

53-58 Repealed:  2001, c. 8, s. 78.

59-61 Repealed:  2001, c. 8, s. 79.

62, 63 Repealed:  2001, c. 8, s. 80.

64 Repealed:  2001, c. 8, s. 81.

65-67 Repealed:  2001, c. 8, s. 82.

68 Repealed:  2001, c. 8, s. 83 (3).

69 Repealed:  2001, c. 8, s. 84 (2).

70-76 Repealed:  2001, c. 8, s. 85.

77 Repealed:  2001, c. 8, s. 85.

78-83 Repealed:  2001, c. 8, s. 85.

84, 85 Repealed:  2001, c. 8, s. 85.

86, 87 Repealed:  2001, c. 8, s. 85.

88 Repealed:  2001, c. 8, s. 86.

89 Repealed:  2001, c. 8, s. 87.

90, 91 Repealed:  2001, c. 8, s. 88.

92 Repealed:  2001, c. 8, s. 89.

93-101 Repealed:  2001, c. 8, s. 90.

102 Repealed:  2001, c. 8, s. 91.

103-105 Repealed:  2001, c. 8, s. 92.

106 Repealed:  2001, c. 8, s. 92.

107 Repealed:  2001, c. 8, s. 92.

108 Repealed:  2001, c. 8, s. 93.

109 Repealed:  2001, c. 8, s. 94.

110 Repealed:  2001, c. 8, s. 95.

111, 112 Repealed:  2001, c. 8, s. 96.

113, 114 Repealed:  2001, c. 8, s. 96.

115 Repealed:  2001, c. 8, s. 96.

116 Repealed:  2001, c. 8, s. 97.

117 Repealed:  2001, c. 8, s. 98.

118-125 Repealed:  2001, c. 8, s. 99.

126 Repealed:  2001, c. 8, s. 100.

127 Repealed:  2001, c. 8, s. 101.

128 Repealed:  2001, c. 8, s. 102.

129 Repealed:  2001, c. 8, s. 103.

130, 131 Repealed:  2001, c. 8, s. 104.

132 Repealed:  2001, c. 8, s. 105.

133 Repealed:  2001, c. 8, s. 106.

134 Repealed:  2001, c. 8, s. 107.

135 Repealed:  2001, c. 8, s. 108.

136, 137 Repealed:  2001, c. 8, s. 109.

138 Repealed:  1997, c. 19, s. 13 (8).

139 Repealed:  2001, c. 8, s. 110.

140 Repealed:  2001, c. 8, s. 111.

141 Repealed:  2001, c. 8, s. 112.

142 Repealed:  2001, c. 8, s. 113.

143 Repealed:  2001, c. 8, s. 114.

144 Repealed:  2001, c. 8, s. 115.

145 Repealed:  2001, c. 8, s. 116.

146 Repealed:  2001, c. 8, s. 117.

147 Repealed:  2001, c. 8, s. 118.

148-149 Repealed:  2001, c. 8, s. 119.

150 Repealed:  2001, c. 8, s. 119.

151 Repealed:  2001, c. 8, s. 120.

152 Repealed:  2001, c. 8, s. 121.

PART X
BUSINESS AND INVESTMENTS

153 Repealed:  2001, c. 8, s. 122.

154 Repealed:  2001, c. 8, s. 123.

Status of money received as a deposit

155 Money received by a trust corporation as a deposit shall be deemed to be held by it in trust for its depositors and the trust corporation shall be deemed to guarantee the repayment thereof.  2001, c. 8, s. 124.

156 Repealed:  2001, c. 8, s. 125.

157 Repealed:  2001, c. 8, s. 126.

158 Repealed:  2001, c. 8, s. 127.

159 Repealed:  2001, c. 8, s. 128.

160 Repealed:  2001, c. 8, s. 129.

161 Repealed:  2001, c. 8, s. 130.

162 Repealed:  2001, c. 8, s. 131.

163 Repealed:  2001, c. 8, s. 132.

164 Repealed:  2001, c. 8, s. 133.

165 Repealed:  2001, c. 8, s. 134.

166-169 Repealed:  1994, c. 17, s. 117.

170 Repealed:  2001, c. 8, s. 135.

171 Repealed:  2001, c. 8, s. 136.

172 Repealed:  2001, c. 8, s. 137.

Common trust funds authorized

173 (1) Despite this or any other Act, a registered provincial trust corporation and any other registered trust corporation that has capacity to do so may, unless the trust instrument otherwise directs, invest money held by it as a fiduciary, other than deposits, in one or more common trust funds of the trust corporation and, where trust money is held by the trust corporation as a co-trustee, the investment thereof in a common trust fund may only be made by the trust corporation with the consent of its co-trustees.  R.S.O. 1990, c. L.25, s. 173 (1).

Exception

(2) A common trust fund authorized by subsection (1) shall not include any money in relation to a trust established exclusively for savings plans registered under the Income Tax Act (Canada).  R.S.O. 1990, c. L.25, s. 173 (2).

(3)-(11) Repealed:  2001, c. 8, s. 138.

174 Repealed:  2001, c. 8, s. 139.

Trustee, executor, etc.

175 (1) Repealed:  2001, c. 8, s. 140.

Approval of the corporation as executor, etc.

(2) Where a registered trust corporation is authorized to execute the office of executor, administrator, trustee, receiver, liquidator, assignee, guardian or committee, and the Lieutenant Governor in Council approves of the corporation being accepted as a trust corporation for the purposes of the Superior Court of Justice, every court or judge having authority to appoint such an officer may, with the consent of the corporation, appoint the corporation to exercise any of such offices in respect of any estate or person under the authority of such court or judge, or may grant to the corporation probate of any will in which the corporation is named as an executor.  R.S.O. 1990, c. L.25, s. 175 (2); 2006, c. 19, Sched. C, s. 1 (1).

Appointment as trustee

(3) A registered trust corporation approved by the Lieutenant Governor in Council under subsection (2),

(a) may be appointed to be a sole trustee, even though but for this Act it would be necessary to appoint more than one trustee; and

(b) may be appointed to any of the offices mentioned in subsection (2) jointly with another person,

and the appointment may be made whether the trustee is required under a deed, will or document creating a trust or whether the appointment is under the Trustee Act or otherwise.  R.S.O. 1990, c. L.25, s. 175 (3).

Security not required

(4) Despite any rule, practice or statutory provision, it is not necessary for a trust corporation approved under subsection (2) to give any security for the due performance of its duty as executor, administrator, trustee, receiver, liquidator, assignee, guardian or committee unless so ordered by a court.  R.S.O. 1990, c. L.25, s. 175 (4).

Trusts

176 (1) A registered corporation is not bound to see to the execution of any trust, whether express, implied or constructive, other than a trust to which the corporation is a party, to which any of its deposits are subject.  R.S.O. 1990, c. L.25, s. 176 (1).

Sufficient discharge

(2) The receipt of the person in whose name any deposit stands in the books of the corporation to which subsection (1) applies is a sufficient discharge to the corporation for any payment made in respect thereof, and a direction to transfer, signed by the person in whose name any such deposit stands in the books of the corporation, is sufficient authority to the corporation for any transfer made in respect thereof, despite any trust to which the same may then be subject and whether the corporation has or has not had notice of the trust.  R.S.O. 1990, c. L.25, s. 176 (2).

Application of money paid

(3) A corporation is not bound to see to the application of any money paid upon a receipt under subsection (2).  R.S.O. 1990, c. L.25, s. 176 (3).

176.1 Repealed:  2001, c. 8, s. 141.

176.2Repealed:  2001, c. 8, s. 142.

176.3Repealed:  2001, c. 8, s. 143.

176.4Repealed:  2001, c. 8, s. 144.

176.5Repealed:  2001, c. 8, s. 145.

176.6Repealed:  2001, c. 8, s. 146.

176.7Repealed:  2001, c. 8, s. 147.

176.8Repealed:  2001, c. 8, s. 148.

176.9Repealed:  2001, c. 8, s. 149.

176.10Repealed:  2001, c. 8, s. 150.

PART XI
ADMINISTRATION

177-179 Repealed:  1997, c. 28, s. 151.

Capacity outside Ontario

180 The Chief Executive Officer may, for the purposes of the administration and enforcement of this Act and the regulations, act outside Ontario as if the Chief Executive Officer were acting inside Ontario.  1997, c. 28, s. 152; 2018, c. 8, Sched. 16, s. 5.

Records

181 (1) Records required by this Act to be prepared and maintained by the Chief Executive Officer may be in bound or loose-leaf form or in photographic film form, or may be entered or recorded by any system of mechanical or electronic data processing or by any other information storage device that is capable of reproducing any required information in an accurate and intelligible form within a reasonable time.  R.S.O. 1990, c. L.25, s. 181 (1); 1997, c. 28, s. 153 (1); 2018, c. 8, Sched. 16, s. 5.

(2), (3) Repealed:  1997, c. 28, s. 153 (2).

Power to require evidence

182 (1) In pursuance of his or her duties under this Act, the Chief Executive Officer may require to be made or may take and receive affidavits or depositions and may examine witnesses upon oath or affirmation.  R.S.O. 1990, c. L.25, s. 182 (1); 1997, c. 28, s. 154; 2018, c. 8, Sched. 16, s. 5.

Employment of stenographer

(2) The evidence and proceedings in any matter before the Chief Executive Officer may be reported by a stenographer who has taken an oath or has affirmed before the Chief Executive Officer faithfully to report the same.  R.S.O. 1990, c. L.25, s. 182 (2); 1997, c. 28, s. 154; 2018, c. 8, Sched. 16, s. 5.

183 Repealed:  2001, c. 8, s. 151.

184 Repealed:  2001, c. 8, s. 152.

185 Repealed:  2001, c. 8, s. 153.

186 Repealed:  2001, c. 8, s. 154.

187 Repealed:  2001, c. 8, s. 155.

188 Repealed:  2001, c. 8, s. 156.

Notice as proof

189 (1) A notice published in The Ontario Gazette over the name of the Chief Executive Officer is of its contents proof, in the absence of evidence to the contrary, without further proof.  R.S.O. 1990, c. L.25, s. 189 (1); 2018, c. 8, Sched. 16, s. 5.

(2), (3) Repealed:  1997, c. 28, s. 159.

Agreements with other Governments

190 The Authority, with the approval of the Lieutenant Governor in Council, may enter into agreements with the Government of Canada or of any province or territory in Canada, or the appropriate authority thereof, related to the administration and enforcement of this Act or of comparable legislation of any such other jurisdiction and, without restricting the generality of the foregoing, any such agreement may provide for the provision and exchange of information.  R.S.O. 1990, c. L.25, s. 190; 1997, c. 28, s. 160; 2018, c. 8, Sched. 16, s. 2.

Capacity of Chief Executive Officer

191 (1) The Chief Executive Officer may do all things necessary or incidental to the administration and enforcement of this Act and the regulations and, in particular, but without limiting the generality of the foregoing, may,

(a) Repealed:  2001, c. 8, s. 157.

(b) enter into written agreements with third parties related to the administration of this Act and the regulations and give indemnities to third parties related to such activities as are authorized under such agreements.  R.S.O. 1990, c. L.25, s. 191 (1); 2001, c. 8, s. 157; 2018, c. 8, Sched. 16, s. 5.

(2) Repealed:  1997, c. 28, s. 161.

PART XII
ENFORCEMENT AND CIVIL REMEDIES

Chief Executive Officer’s orders

192 (1) If, in the Chief Executive Officer’s opinion, a corporation or other person is committing any act or pursuing any course of conduct that does not comply with this Act or the regulations, the Chief Executive Officer may give notice to the corporation or person of an intention to order him, her or it,

(a) to cease committing an act or to cease pursuing a course of conduct identified by the Chief Executive Officer; or

(b) to perform such acts as, in the Chief Executive Officer’s opinion, are necessary to remedy the situation.  2001, c. 8, s. 158 (1); 2018, c. 8, Sched. 16, s. 5, 6.

Hearing

(2) The corporation or other person, by written notice served on the Chief Executive Officer within fifteen days after the service of the notice on the corporation or other person under subsection (1), may require a hearing before the Chief Executive Officer.  R.S.O. 1990, c. L.25, s. 192 (2); 1997, c. 28, s. 162; 2018, c. 8, Sched. 16, s. 5.

Temporary order

(3) Despite subsection (2), where in the opinion of the Chief Executive Officer the interests of the depositors or the public may be prejudiced or adversely affected by any delay in the issuance of a permanent order, the Chief Executive Officer may make a temporary order as described in clause (1) (a) or (b) which shall take effect immediately on its making and which shall become permanent on the fifteenth day after its making unless within that time a hearing before the Chief Executive Officer is requested.  R.S.O. 1990, c. L.25, s. 192 (3); 1997, c. 28, s. 162; 2018, c. 8, Sched. 16, s. 5.

When order may be made

(4) Where no hearing is requested within the time set out in subsection (2) or (3), or where a hearing is held and the Chief Executive Officer is of the opinion that an order described in clause (1) (a) or (b) should be made, the Chief Executive Officer may make a permanent order under either of those clauses which shall take effect immediately on its making or at such later date as may be set out in the order.  R.S.O. 1990, c. L.25, s. 192 (4); 1997, c. 28, s. 162; 2018, c. 8, Sched. 16, s. 5.

Hearing

(5) A request for a hearing under subsection (3) shall be in writing and served on the Chief Executive Officer.  R.S.O. 1990, c. L.25, s. 192 (5); 1997, c. 28, s. 162; 2018, c. 8, Sched. 16, s. 5.

Extension of order

(6) Where a hearing is requested under subsection (3), the Chief Executive Officer may extend the temporary order until the hearing is concluded or any appeal from the hearing is concluded and the order is confirmed, varied or revoked.  R.S.O. 1990, c. L.25, s. 192 (6); 1997, c. 28, s. 162; 2018, c. 8, Sched. 16, s. 5.

(7) Repealed:  2001, c. 8, s. 158 (2).

Modification or revocation

(8) The Chief Executive Officer, after giving the corporation or other person named in the order an opportunity to be heard, may modify or revoke an order made under this section.  R.S.O. 1990, c. L.25, s. 192 (8); 1997, c. 28, s. 162; 2018, c. 8, Sched. 16, s. 5.

Appeals

193 (1) A party to a hearing before the Chief Executive Officer under section 192 may, within 15 days after receiving the Chief Executive Officer’s decision, appeal the decision to the Tribunal by serving a notice in writing of the appeal on the Chief Executive Officer and filing the notice with the Tribunal.  1997, c. 28, s. 163; 2018, c. 8, Sched. 16, s. 5, 6.

Disposition

(2) An appeal shall be based on the evidence presented to the Tribunal and on hearing an appeal, the Tribunal may confirm, vary or revoke the order that is the subject of the appeal.  1997, c. 28, s. 163.

Chief Executive Officer’s decisions

194 (1) A decision made by the Chief Executive Officer under this Act must be in writing and is not subject to appeal.  2001, c. 8, s. 159; 2018, c. 8, Sched. 16, s. 5.

Exception

(2) Subsection (1) does not apply to an order under section 192.  2001, c. 8, s. 159.

Chief Executive Officer may be party

195 The Chief Executive Officer is entitled to attend and to be represented by counsel at any hearing before the Tribunal.  1997, c. 28, s. 165; 2018, c. 8, Sched. 16, s. 5.

Transcript

196 Oral evidence taken before the Chief Executive Officer or the Tribunal may be recorded and, if recorded, copies of a transcript of it shall be furnished upon request on the same terms and for the same fees as in the Superior Court of Justice.  1997, c. 28, s. 165; 2006, c. 19, Sched. C, s. 1 (1); 2018, c. 8, Sched. 16, s. 5.

Hearing in private

197 A hearing before the Chief Executive Officer or the Tribunal, at the discretion of the Chief Executive Officer or the chair of the Tribunal, as the case may be, may be heard in private or in public.  1997, c. 28, s. 165; 2018, c. 8, Sched. 16, s. 5.

198 Repealed:  2001, c. 8, s. 160.

199 Repealed:  2001, c. 8, s. 161.

200, 201 Repealed:  2001, c. 8, s. 162.

202 Repealed:  2001, c. 8, s. 163.

203 Repealed:  2001, c. 8, s. 164.

204 Repealed:  2001, c. 8, s. 165.

205 Repealed:  2001, c. 8, s. 166.

Investigation

206 (1) Where upon a statement made under oath or affirmation it appears probable to the Chief Executive Officer that any corporation or other person has contravened any of the provisions of this Act or the regulations, the Chief Executive Officer by order may appoint any person to make such investigation as the Chief Executive Officer considers expedient for the due administration and enforcement of this Act, and in the order shall determine and prescribe the scope of the investigation.  R.S.O. 1990, c. L.25, s. 206 (1); 2018, c. 8, Sched. 16, s. 5.

Scope of investigation

(2) For the purpose of any investigation ordered under this section, the person appointed to make the investigation may investigate, inquire into and examine,

(a) the affairs of the person or corporation in respect of whom the investigation is being made and any books, papers, documents, correspondence, communications, negotiations, transactions, investigations, loans, borrowings and payments to, by, on behalf of or in relation to or connected with the corporation or other person and any property, assets or things owned, acquired or alienated in whole or in part by the corporation or other person or by any person or corporation acting on behalf of or as agent for the person or corporation; and

(b) the assets at any time held, the liabilities, debts, undertakings and obligations at any time existing, the financial or other conditions at any time prevailing in or in relation to or in connection with the corporation or other person and the relationship that may at any time exist or have existed between the corporation or other person and any other person by reason of investments, purchases, commissions promised, secured or paid, interests held or acquired, purchase or sale of stock or other property, the transfer, negotiation or holding of stock, interlocking directorates, common control, undue influence or control or any other relationship.  R.S.O. 1990, c. L.25, s. 206 (2).

Powers to summon witnesses and require production

(3) The person making an investigation under this section has the same power to summon and enforce the attendance of witnesses and compel them to give evidence on oath or otherwise, and to produce documents, records and things, as is vested in the Superior Court of Justice for the trial of civil actions, and the failure or refusal of a person to attend, to answer questions or to produce such documents, records and things as are in the person’s custody or possession makes the person liable to be committed for contempt by a judge of the Superior Court of Justice as if in breach of an order or judgment of the Superior Court of Justice and no provision of the Evidence Act exempts any bank or corporation or any officer or employee thereof from the operation of this section.  R.S.O. 1990, c. L.25, s. 206 (3); 2006, c. 19, Sched. C, s. 1 (1).

Counsel

(4) A person giving evidence at an investigation under this section may be represented by counsel.  R.S.O. 1990, c. L.25, s. 206 (4).

Seizure of property

(5) Where an investigation is ordered under this section, the person appointed to make the investigation may seize and take possession of any documents, records, securities or other property of the corporation or other person whose affairs are being investigated.  R.S.O. 1990, c. L.25, s. 206 (5).

Inspection of seized documents

(6) Where any documents, records, securities or other property are seized under subsection (5), the documents, records, securities or other property shall be made available for inspection and copying by the corporation or other person from whom seized at a mutually convenient time and place if a request for an opportunity to inspect or copy is made by the person or corporation to the person appointed to make the investigation.  R.S.O. 1990, c. L.25, s. 206 (6).

Accountants and experts

(7) Where an investigation is ordered under this section, the Chief Executive Officer may appoint an accountant or other expert to examine documents, records, property and matters of the person or corporation whose affairs are being investigated.  R.S.O. 1990, c. L.25, s. 206 (7); 2018, c. 8, Sched. 16, s. 5.

Reports of investigation

(8) Every person appointed under subsection (1) or (7) shall provide the Chief Executive Officer with a full and complete report of the investigation including any transcript of evidence and material in his or her possession relating to the investigation.  R.S.O. 1990, c. L.25, s. 206 (8); 2018, c. 8, Sched. 16, s. 5.

Protection from personal liability

207 No action or other proceeding for damages shall be instituted against a person appointed under subsection 206 (1) or (7) for any act done in good faith in the execution or intended execution of the person’s duty or for any alleged neglect or default in the execution in good faith of the person’s duty.  R.S.O. 1990, c. L.25, s. 207.

Order to freeze property

208 (1) In the circumstances described in subsection (1.1), the Chief Executive Officer may direct any corporation or other person who has funds, securities or assets of a corporation or person described in clause (1.1) (a) or (b) on deposit, under control or for safekeeping to do any of the following things:

1. To hold the funds, securities or assets.

2. To direct the corporation or person described in clause (1.1) (a) or (b)  to refrain from withdrawing funds, securities or assets from, or dealing with funds, securities or assets with, any other person who has any of them on deposit, under control or for safekeeping.

3. To direct the corporation or person described in clause (1.1) (a) or (b) to hold all funds, securities or assets in his, her or its possession or control in trust for the Chief Executive Officer.  2001, c. 8, s. 167 (1); 2018, c. 8, Sched. 16, s. 5.

Same

(1.1) The Chief Executive Officer may give the direction described in subsection (1),

(a) if the Chief Executive Officer is about to order an investigation in respect of a corporation or other person under section 206, or during or after such an investigation; or

(b) if proceedings in respect of a contravention of this Act or the regulations are about to be, or have been, instituted against a corporation or other person and if, in the opinion of the Chief Executive Officer, the proceedings are connected with or arise out of any business conducted by the corporation or person.  2001, c. 8, s. 167 (1); 2018, c. 8, Sched. 16, s. 5.

Same

(1.2) A direction described in subsection (1) must be given by a method that provides for a written or printed copy.  2001, c. 8, s. 167 (1).

Idem

(2) A direction issued under subsection (1) does not apply to funds or securities in a stock exchange clearing house or to securities in process of transfer by a transfer agent unless the direction expressly so states and in the case of a bank or a corporation, the direction applies only to the offices, branches or agencies thereof named in the direction.  R.S.O. 1990, c. L.25, s. 208 (2).

Application for directions

(3) Any person or corporation named in a direction issued under subsection (1), if in doubt as to the application of the direction to particular funds, securities or assets, may apply to the Chief Executive Officer for an order of clarification.  R.S.O. 1990, c. L.25, s. 208 (3); 2018, c. 8, Sched. 16, s. 5.

Revocation or amendment of direction

(4) Upon the application of a registered corporation or other person directly affected by a direction issued under subsection (1), the Chief Executive Officer may make an order on such terms and conditions as he or she may impose revoking the direction or consenting to the release of any fund or security.  R.S.O. 1990, c. L.25, s. 208 (4); 2018, c. 8, Sched. 16, s. 5.

Notice to land registry offices

(5) In any of the circumstances mentioned in subsection (1.1), the Chief Executive Officer may by any method that provides a written or printed copy notify any land registrar that proceedings are being or are about to be taken that may affect land belonging to the corporation or other person referred to in the notice, and the land registrar shall register the notice against the title of the land.  R.S.O. 1990, c. L.25, s. 208 (5); 2001, c. 8, s. 167 (2); 2018, c. 8, Sched. 16, s. 5.

Idem

(6) A notice registered under subsection (5) has the same effect as the registration of a certificate of pending litigation or a caution, and the Chief Executive Officer may in writing revoke or modify the notice.  R.S.O. 1990, c. L.25, s. 208 (6); 2018, c. 8, Sched. 16, s. 5.

209 Repealed:  2001, c. 8, s. 168.

210 Repealed:  2001, c. 8, s. 169.

211 Repealed:  2001, c. 8, s. 170.

212 Repealed:  2001, c. 8, s. 171.

PART XIII
OFFENCES AND PENALTIES

Carrying on business of corporation prohibited

213 (1) No person, other than a registered corporation, shall conduct, undertake or transact in Ontario the business of a loan corporation or of a trust corporation.  R.S.O. 1990, c. L.25, s. 213 (1).

Acting as trustee, etc., prohibited

(2) No body corporate, other than a registered trust corporation, shall,

(a) offer its services to the public as, or accept or execute the office of,

(i) executor or administrator, or

(ii) guardian of property; or

(b) act as a trustee in respect of any service it provides to the public.  R.S.O. 1990, c. L.25, s. 213 (2); 1996, c. 2, s. 70 (2).

Exception

(3) Clause (2) (b) does not apply to,

(a) a body corporate that is acting as a trustee as provided under Part V of the Business Corporations Act or as required by any other Act; or

(b) a body corporate that manages a mutual fund trust and that is approved by the Ontario Securities Commission to act as the trustee of the mutual fund trust.  R.S.O. 1990, c. L.25, s. 213 (3).

Same

(3.1) Clause (2) (b) does not apply to preclude a credit union or league, as defined by the Credit Unions and Caisses Populaires Act, 1994 from acting as a trustee and maintaining trust funds.  1994, c. 11, s. 390.

Note: On a day to be named by proclamation of the Lieutenant Governor, subsection 213 (3.1) of the Act is amended by striking out “league, as defined by the Credit Unions and Caisses Populaires Act, 1994” and substituting “central, as defined by the Credit Unions and Caisses Populaires Act, 2020”. (See: 2020, c. 36, Sched. 7, s. 318 (3))

Restriction on use of name

(4) No person, other than a registered trust corporation, shall hold itself out to the public in Ontario as a registered trust corporation by using in its name the words “trust corporation”, “trust company”, “trustco”, “société de fiducie” ou “compagnie de fiducie” or any similar words in its name in conjunction with its business or undertakings, unless such name was legally in use before the 5th day of April, 1988.  R.S.O. 1990, c. L.25, s. 213 (4).

Carrying on business by corporations

(5) No corporation, other than a registered corporation, shall hold itself out to the public in Ontario as a registered corporation by conducting, undertaking or transacting any part or aspect of the business of a trust corporation or loan corporation.  R.S.O. 1990, c. L.25, s. 213 (5).

Soliciting business

(6) No person, other than a registered corporation and a person duly authorized by it to act on its behalf, shall solicit the business of a trust corporation or loan corporation.  R.S.O. 1990, c. L.25, s. 213 (6).

Action of promoters, etc.

(7) No person shall undertake, transact or solicit in Ontario any part or aspect of the business of a trust corporation or a loan corporation for a body corporate that is not registered under this Act.  R.S.O. 1990, c. L.25, s. 213 (7).

(8) Repealed:  2001, c. 8, s. 172.

Offences

214 (1) A person is guilty of an offence if the person,

(a) contravenes any provision of section 213; or

(b) knowingly provides false information in relation to any matter under this Act.  2001, c. 8, s. 173 (1).

Penalty

(2) On conviction for an offence referred to in subsection (1), the person convicted is liable on a first conviction to a fine of not more than $100,000 and on each subsequent conviction to a fine of not more than $200,000.  R.S.O. 1990, c. L.25, s. 214 (2); 2001, c. 8, s. 173 (2).

Derivative

(3) Every person who caused, authorized, permitted or participated in an offence referred to in subsection (1) is guilty of an offence and on conviction is liable on a first conviction to a fine of not more than $100,000 and on each subsequent conviction to a fine of not more than $200,000.  R.S.O. 1990, c. L.25, s. 214 (3); 2001, c. 8, s. 173 (3).

(4), (5) Repealed:  2001, c. 8, s. 173 (4).

Limitation period

215 No proceeding for an offence under this Part shall be commenced in any court more than two years after the facts upon which the proceedings are based first came to the knowledge of the Chief Executive Officer.  R.S.O. 1990, c. L.25, s. 215; 2018, c. 8, Sched. 16, s. 5.

Order to comply

216 Where a person is convicted of an offence under this Act or the regulations, the court in which proceedings in respect of the offence are taken, in addition to any punishment it may impose, may order that person to comply with the provisions of this Act or the regulations for the contravention of which the person has been convicted.  R.S.O. 1990, c. L.25, s. 216.

Restitution

217 Where a person is convicted of an offence under this Act, the court making the conviction may, in addition to any other penalty, order the person convicted to make compensation or restitution in relation thereto.  R.S.O. 1990, c. L.25, s. 217.

PART XIV
MISCELLANEOUS AND REGULATIONS

218-220 Repealed:  2001, c. 8, s. 174.

221 Repealed:  2001, c. 8, s. 175.

Delivery of notices

222 (1) Delivery of any written notice or document for any purpose of this Act, where the mode is not otherwise specified, may be delivered by first class ordinary mail or first class registered mail,

(a) in the case of a registered corporation, addressed to it or the chief executive officer of the corporation at its principal place of business in Ontario;

(b) in the case of a director, addressed to the director at his or her address as shown on the records of the Chief Executive Officer; and

(c) in the case of the Chief Executive Officer, addressed to the Chief Executive Officer at his or her office.  R.S.O. 1990, c. L.25, s. 222 (1); 2001, c. 8, s. 176 (1); 2018, c. 8, Sched. 16, s. 3, 5.

(2) Repealed:  2001, c. 8, s. 176 (2).

Regulations

223 (1) The Lieutenant Governor in Council may make regulations,

(a) prescribing prohibited words or expressions for the purpose of subsection 213 (4);

(b) prescribing the information that must be maintained in the Loan Corporations Register and the Trust Corporations Register;

(c) prescribing any matter referred to in this Act as being prescribed by the regulations.  2001, c. 8, s. 177.

Same

(2) A regulation made under this Act may,

(a) prescribe classes of registered corporations;

(b) contain different provisions for different registered corporations or different classes of registered corporations; and

(c) apply only to specified registered corporations or specified classes of registered corporations.  1994, c. 17, s. 119 (4).

223.0.1 Repealed: 2020, c. 36, Sched. 14, s. 9 (2).

Forms

223.1 (1) The Chief Executive Officer may approve the use of forms for any purpose of this Act and the forms may provide for such information to be furnished as the Chief Executive Officer may require.  1997, c. 19, s. 13 (18); 1999, c. 12, Sched. I, s. 5 (3); 2018, c. 8, Sched. 16, s. 5.

Fees

(2) The Minister of Finance may establish and charge fees in relation to any matter under this Act, including any services provided by or through the Ministry of Finance.  2001, c. 8, s. 178; 2020, c. 36, Sched. 14, s. 9 (3).

Note: On a day to be named by proclamation of the Lieutenant Governor, subsection 223.1 (2) of the Act is repealed. (See: 2015, c. 20, Sched. 21, s. 1)

(3) Repealed:  2001, c. 8, s. 178.

224 Repealed:  2001, c. 8, s. 179.

Note: On a day to be named by proclamation of the Lieutenant Governor, the Act is amended by adding the following section: (See: 2015, c. 20, Sched. 21, s. 2)

Fees

224 The Minister of Finance may make regulations governing fees under this Act, including,

(a) requiring the payment of fees in relation to any matter under this Act, including any services provided by or through the Ministry of Finance or the Financial Services Commission of Ontario;

Note: On the day section 2 of Schedule 21 to the Building Ontario Up Act (Budget Measures), 2015 comes into force, clause 224 (a) of the Act is amended by striking out “or the Financial Services Commission of Ontario”. (See: 2020, c. 36, Sched. 14, s. 9 (4))

(b) prescribing the amount of fees or the manner of determining fees;

(c) prescribing the manner in which and the period within which fees must be paid. 2015, c. 20, Sched. 21, s. 2.

225 Repealed:  2001, c. 8, s. 179.

226 Repealed:  2001, c. 8, s. 180.

227 Repealed:  2001, c. 8, s. 181.

228 Repealed:  2001, c. 8, s. 182.

______________

Français

Источник: https://www.ontario.ca/laws/statute/90l25

Marcia Hultman

Trust Companies

Documents referenced below are available in Adobe PDF format unless otherwise noted.

Types of Trust Companies

Listing of Trust Companies Licensed to Do Business in South Dakota

Fiduciary and Related Services Report Instructions

Trust Company Information Packet

Processing of Applications

Trust Company Applications and Notices

Annual Report Forms

Miscellaneous Trust Company Forms

Change in Management, Officers and Key Employees

Trust Company Requirements

Summary of Key Statutory Requirements

Financial Institution Tax

Supervisory Guidance

Legislative Updates and Memorandums

Governor's Task Force on Trust Administration Review and Reform

Contact Information

 

Types of Trust Companies

Public

A public trust company resembles a traditional bank trust department or trust company with the defining factor being the solicitation and acceptance of public accounts. For specific statutory information regarding the definition of a Public Trust company, please refer to South Dakota Codified Law (SDCL) 51A-6A-1(12A).

Private

Private trust companies limit activities to the management of private assets, usually for the benefit of a single family lineage. For the definition of a private trust company as set forth by the Banking Commission, please refer to Administrative Rule of South Dakota (ARSD) 20:07:22:03.

back to top

 

Processing of Applications

If the Division determines there are material errors or omissions in a trust company application, the Division will notify the applicant within 30 days of receipt of the application.

If an application is complete and contains no material errors or omissions, the Division will submit notice for publication pursuant to South Dakota Codified Law (SDCL) 51A-6A-4 and SDCL 51A-2-16 no later than 60 days after receipt of the application.

 

Trust Company Applications and Notices

Please download and open these documents and forms in an Adobe Acrobat to view and complete.

Charter Application and Instructions

Interstate Trust Application

Intrastate Trust Application

Oath of Board Members

Change in Control Notice

Change of Name Notice

Change of Address Application

Charter Surrender Application

Special Purpose Entity Notice

-back to top-

 

Annual Report Forms

According to SDCL 51A-6A-34, trust companies are required to provide an annual report to the Director of Banking. In an effort to control costs and improve efficiency, the forms are available below in Adobe PDF format (unless otherwise noted). The completed reports, signature pages and fee must be submitted to the Division of Banking no later than January 30. Trust companies created as limited liability companies are required to file an Oath of Managers for directorate members; all other trust company entities are required to file an Oath of Directors for directorate members. Once appointed, directors and mangers are not required to complete an oath each year, but must submit a copy of their original oath with the annual report.

Please download and open these documents and forms in an Adobe Acrobat to view and complete.

List of Owners

List of Officers and Employees

List of Board Members

List of Entities

Oath of Board Members

See ARSD 20:07:22:01 - Fee Calculation.

Supervisory Fee Calculator

-back to top-

 

Miscellaneous Trust Company Forms

ACH Authorization Form

Pledge Escrow Agreement

 

Change in Management, Officers and Key Employees

Criminal background investigation, credit reports and litigation reports are required for new hires of existing South Dakota chartered trust companies. Pursuant to SDCL 51A-6A-17, an independent criminal background investigation, independent credit report and litigation report must be submitted for each new hire. New hires are defined as owners, board members, officers and key employees.

Criminal background investigations for public trust company individuals will be performed via fingerprints on cards provided by the Division; two fingerprint cards, one for the Federal Bureau of Investigation and one for the South Dakota Division of Criminal Investigation, must be submitted along with a check made payable to the “South Dakota Division of Criminal Investigation” for $43.25 for each individual receiving the background check.

Criminal background investigation for private trust company individuals require only a name-based criminal background investigation performed by an independent third party, in addition to a credit report and litigation report. For both public trust companies and private trust companies, litigation reports may be provided as a third party report (preferred) or by way of a sworn affidavit if sufficiently detailed. All trust companies are required to immediately notify the Division of any material change to the background of any individual that would otherwise be subject to this process. All costs associated with these processes are to be paid by the applicant or trust company as applicable.

A Biographical and Financial Report (available below) for each new hire must be completed and submitted with the required background information.

Biographical and Financial Report

Background Attestation

-back to top-

 

Trust Company Requirements

Summary of Key Statutory Requirements

Trust companies are encouraged to thoroughly review SDCL Chapter 51A-6A and Title 55, which pertain to the creation and administration of a South Dakota trust company and address trust law in South Dakota. Sections of note include:

  • The capitalization of a trust company shall not be less than $200,000 pursuant to SDCL 51A-6A-19.
  • A fidelity bond and director's and officer's liability insurance policy coverage of at least $1,000,000 each are required pursuant to SDCL 51A-6A-19.
  • A deposit pledged to the Division shall not be less than $100,000 pursuant to SDCL 51A-6A-19.
  • A South Dakota-chartered trust company is subject to an annual supervisory fee computed at the rate of seven cents per $10,000 of total trust assets under management, administration, or custody as reported as of the end of December. The minimum annual fee is $3,750 and the maximum annual fee is $20,000 for private trust companies, while the minimum annual fee is $4,500 and the maximum annual fee is $30,000 for public trust companies. In addition, trust companies shall pay the actual cost for each on-site examination and the additional supervision costs for any trust company operating under an enforcement action. These fees are pursuant to ARSD 20:07:22:01.
  • SDCL 51A-06A-11.1, SDCL 51A-6A-11.2, and SDCL 51A-6A-11.3 establishes jurisdiction criteria needed to establish South Dakota situs. 

 

Public Trust Company Mandates

Private Trust Company Mandates

Trust Company Examination Procedures

 

-back to top-

 

Financial Institution Tax

South Dakota chartered trust companies are defined as a financial institution pursuant SDCL 10-43-1, which imposes a net-income-based tax on South Dakota sitused financial institutions. However, SDCL 10-43-90 imposes a minimum financial institution tax on South Dakota chartered trust companies. The minimum financial institution tax applied to South Dakota chartered trust companies is tiered over the first five years of operation. The annual minimum tax is $500 for fewer than 12 months of operation; $2,000 for over 12 months but less than 24 months of operation; $5,000 for over 24 months but less than 36 months of operation; $10,000 for over 36 months but fewer than 48 months of operation; and $25,000 annually after 48 months.

-back to top-

 

Supervisory Guidance

The following guidance is generally derived from best business practices utilized by South Dakota-regulated financial institutions to mitigate business and fiduciary risks. The examination process is structured to assess each institution’s risk management processes and to assist management in addressing any areas of identified weaknesses.  Examination observations regularly reference supervisory guidance to provide management with examples of sound risk management practices and to assist with corresponding risk mitigation.  While examinations do not cite violations of supervisory guidance, deviations from the guidance could heighten the institution’s overall risk profile which may negatively impact regulatory assessments.  Please note that the supervisory guidance is general in nature and designed to assist management with developing a comprehensive risk management program.  Therefore, the guidance should be modified as needed to correspond with each institution’s unique business model.    

Account-Level Administrative Review Guidance

Account-Level Investment Review Guidance

Bank Secrecy Act Guidance

Customer Identification Guidance

Due Diligence Review Guidance

Foreign Trust Acceptance and Oversight Guidance

Foreign Trust Taxation and Reporting Guidance

Internal Audit Guidance

Interstate Trust Guidance

Investment Policy Guidance

Pooled Investment Guidance

Real Estate Oversight Guidance

Regulation R Guidance

Statement of Principles of Trust Management

Statement of Principles of Trust Management - Custodial

Written Policies and Procedures Guidance

-back to top-

 

Legislative Updates and Memorandums

10-001 Situs Clarification (November 20, 2001)

10-002 Regulation R (July 9, 2010)

10-003 Bank Secrecy Act (June 6, 2011)

10-004 Interstate Trust Guidance (April 3, 2015)

10-005 Interstate Trust Guidance Addendum (October 13, 2015)

10-006 Office Space Reminder (June 30, 2017)

10-007 Pandemic Planning (March 23, 2020)

10-008 FinCEN Final Rule dated September 15, 2020 (January 5, 2021)

20-002 New Trust Legislation (June 6, 2008)

20-004 New Trust Legislation (April 26, 2007)

20-005 New Trust Legislation (June 12, 2009)

20-007 New Trust Legislation (June 8, 2010)

20-008 New Trust Legislation (June 23, 2011)

20-009 New Trust Legislation (June 8, 2012)

20-010 New Trust Legislation (October 22, 2012)

20-011 New Trust Legislation (June 10, 2013)

20-012 New Trust Legislation (June 12, 2014)

20-013 Situs Reminder (June 12, 2014)

20-014 New Trust Legislation (June 19, 2015)

20-015 New Trust Legislation (July 8, 2016)

20-021 New Trust Legislation (June 30, 2017)

20-023 New Trust Legislation (June 15, 2018)

20-024 New Trust Legislation (June 19, 2019)

20-027 New Trust Legislation (June 3, 2020)

back to top

 

Contact Information

If you cannot find the information you are looking for regarding trust companies, charters or complaints specific to the trust arena in the information above, please contact the Division of Banking.

Источник: https://dlr.sd.gov/banking/trusts/default.aspx

Wealth is more than
the accumulation
of assets™

News

Fiduciary Trust Experts in the News

At Fiduciary Trust, our industry-recognized experts and investment officers help our clients stay one step ahead. Given the depth of our expertise, our officers are regularly engaged in speaking events and sought out by the media for their views. ▸

Suma Nair Joins FTC as Chief Fiduciary Officer

Fiduciary Trust is pleased to announce the hiring of Suma Nair as Chief Fiduciary Officer. ▸

FTC Named a Top Charitable Contributor

Fiduciary Trust has been named a Top Charitable Contributor by the Boston Business Journal for the ninth year in a row. ▸

Chris Shepler Joins FTC as VP & Investment Officer

Fiduciary Trust is pleased to announce the hiring of Chris Shepler as Vice President and Investment Officer. ▸

FTC named a Best Financial Advisor in Boston

Fiduciary Trust Company is honored to have been named a 2021 Best Financial Advisor in Boston by Expertise. ▸

Greg O’Connell Joins FTC as VP & Investment Officer

Fiduciary Trust is pleased to announce the hiring of Greg O'Connell as Vice President and Investment Officer. ▸

FTC Named a Finalist for Two WM.com Awards

Fiduciary Trust Company was recently named as a finalist for two WM.com industry awards, for custody transition support and thought leadership. ▸

Donor-Advised Fund Program Enhancements

We continue to expand our capabilities to meet the growing demand and generosity of our donors. ▸

Fiduciary an FWR Award Winner

Fiduciary Trust has been named a winner in the Eighth Annual Family Wealth Report Awards 2021 for best Marketing or PR Campaign.  ▸

Stephens and Grandfield Join FTC

Fiduciary Trust is pleased to announce the hiring of Michael Stephens as a Vice President and Investment Officer and Sarah Grandfield as Vice President and Trust Counsel ▸

Источник: https://www.fiduciary-trust.com/

Understanding How Top Trust Companies Operate

Banks, insurance companies, brokerage firms, and financial planning firms are all vying for a piece of your portfolio. As a result, consumers often find their assets scattered among these institutions. One solution to this problem is a trust company, which can provide a variety of investment, tax, and estate planning services for clients. This article will provide a high-level overview of the nature and function of trust companies, as well as the services they offer.

What Is a Trust Company?

By definition, a trust company is a separate corporate entity owned by a bank or other financial institution, law firm, or independent partnership. Its function is to manage trusts, trust funds, and estates for individuals, businesses, and other entities. A trust is an arrangement that allows a third party or trustee to hold assets or property for a beneficiary or beneficiaries.

Trust companies get their title from the fact that they act in a fiduciary capacity for their clients—as trustees. A fiduciary is an organization or an individual with the responsibility to act on behalf of others to manage their assets. 

The majority of a trust company's assets are held in actual trusts, with the trust company named as the trustee. Trust companies generally employ several types of financial professionals, including financial planners, attorneys, portfolio managers, CPAs, and other tax professionals, trust officers, real estate experts, and administrative personnel.

Key Takeaways

  • A trust company is a separate corporate entity owned by a bank or other financial institution, law firm, or independent partnership.
  • A trust is an arrangement that allows a third party or trustee to hold assets or property for a beneficiary or beneficiaries.
  • A trust company manages trusts, trust funds, and estates for individuals, businesses, and other entities.
  • Trust companies perform a wide range of services related to investment and asset management as well as safekeeping services.

What Can a Trust Company Do for Me?

Trust companies perform a wide range of services related to investment and asset management. Of course, one of the primary functions of most trust companies is managing the investment portfolios within the trusts of their clients. The investment management is done either in-house or by an affiliated third-party manager selected by or recommended to the client.

A wide variety of investments, ranging from individual securities and mutual funds to derivatives and real estate, can be employed to achieve various investment objectives, such as growth or income. Special services are also available for high-net-worth clients, including alternative investments, such as limited partnerships, natural resources, private equity, and hedge funds. Regardless of the type of management used, investment management is always customized for each client's risk tolerance and time horizon.

Financial and Trust Services

Trust companies also can provide safekeeping services within secure vaults for other types of tangible investments or valuables, such as jewelry and collectibles. Often financial planners are employed to produce comprehensive financial plans for clients, covering all aspects of a client's financial life, including investments, insurance, and retirement planning. A planner might also focus on a specific segment of a client's finances, such as investment or college planning. Comprehensive income, gift, trust, and estate tax return preparation and planning are also standard fare for many trust companies. Even escrow services and holding accounts for proceeds from 1031 exchange real estate transactions can be provided, if necessary. Section 1031 is an Internal Revenue Code (IRC) provision that allows taxes to be deferred on qualifying assets such as real estate.

Estate Planning Services

Trust companies can handle all aspects of the estate settlement process, including valuation, dispersion, and re-titling of assets, payment of debts, and expenses, estate tax return preparation, the sale of closely-held businesses, and all other necessary tasks related to passing on the property of a deceased grantor or client. Trust companies often end up working with their clients' heirs as well, providing the same array of services to the estate assets' recipients as to the donor.

Corporate Trust Services

Corporate trust services can provide assistance with both the issuance and administration of corporate debt. Corporate trusts might distribute the interest payments from the corporation to the bondholders and ensure that the issuer is adhering to the covenants of the bond agreement.

Types of Trusts

Trust companies manage all phases of the trust creation, administration, and disposition processes. Although there are many different types of trusts, they usually fall into two types of categories.

Revocable Trust

A revocable trust is a trust that can be changed at any time. For example, the beneficiaries could be changed, or the trust can be dissolved. The owner of a revocable trust maintains control over the trust at all times. The owner or grantor can be the beneficiary or name anyone.

Irrevocable Trust

An irrevocable trust doesn't allow any changes nor can the trust be dissolved without the permission from the beneficiary. Irrevocable trusts are helpful in avoiding taxes on gifts or protecting the beneficiary's inheritance from any legal actions from creditors if the beneficiary has financial issues later in life.

Other types of trusts include:

Why Use a Trust Company?

Trust companies can provide a wealth of services to clients from one convenient, centralized location. They save their clients time and effort by eliminating the need to coordinate financial assets and information between brokers, financial planners, tax advisors, tax preparers, and attorneys. Trust companies also take full fiduciary responsibility for their clients' financial well-being, thus assuring that the clients' best interests are always considered in each service and transaction performed.

Consumers who want to engage the services of a trust company will have many local entities from which to choose. Virtually all major banks and savings institutions offer trust services through a separate department. Still, most clients who wish to employ a trust company must generally meet certain financial requirements; for instance, a trust may require the client to have a net worth of at least $500,000.

The Bottom Line

Trust companies provide a wide array of services, ranging from trust and investment administration to comprehensive wealth management services, such as tax preparation, tax advice, and financial planning services. For consumers seeking a 'one-stop-shop' approach to the management of their financial affairs, trust companies may offer the perfect solution.

Источник: https://www.investopedia.com/articles/retirement/08/trust-company.asp

Trust companies: A good solution or just costly?

Do you want to know if you should manage your investments personally or use a trust company? When is a trust company an essential, an asset or a costly option?

If your sole objective is to save on taxes, you don't need to create a trust company1 for your investments given the various fees involved in setting up and administering it: preparing annual financial statements, filing income taxes, updating the minutes.

When a shareholder of an operating company becomes shareholder of a trust company

Here are the 2 most common situations in which an individual becomes shareholder of a trust company:

Situation 1

The operating company's shareholding structure is modified so it can be held by one or more trust companies.

Situation 2

The operating company sells all assets used within the business. It then ceases its activities and holds on to the revenue from the sale. In this case, holding cash and investments makes it a trust company. The shareholder then elects to retain the trust or liquidate it.

4 other reasons to opt for a trust company

Creating a trust company is also beneficial to shareholders who want to:

  • limit their liability to their investment since they aren't responsible for the company's debts
  • protect the company's assets from their personal creditors, and vice versa, since these are 2 separate legal entities
  • take advantage of the confidentiality a company provides
  • split income with family members by paying them dividends, while maintaining control and ownership of the investments

Whether you manage your investments yourself or through a trust company, various investment strategies are available to you. Talk to your Desjardins financial planner for tips that work for your personal situation.

  1. We decided to use the term “trust company,” but “investment company” or “holding company” would have been just as good.
Источник: https://www.desjardins.com/ca/co-opme/business/tip-sheets/trust-companies/index.jsp

3 Replies to “What is a trust company”

Leave a Reply

Your email address will not be published. Required fields are marked *