Instructions for Form TR-102 "Trust Company Fiduciary and Related Services" - Missouri

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Download Instructions for Form TR-102 "Trust Company Fiduciary and Related Services" - Missouri

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TR-102 Instructions
Page 1
STATE OF MISSOURI
DIVISION OF FINANCE
P.O. Box 716
Jefferson City, Missouri 65102-0716
TRUST COMPANY
FIDUCIARY AND RELATED SERVICES
TR-102 INSTRUCTIONS
General Instructions
Fiduciary and Related Services TR-102 should be completed on a fully consolidated basis including any subsidiary of the
reporting institution. Non-depository institutions with fiduciary and related services must complete the Fiduciary and
Related Assets section quarterly and the Memorandum section annually.
Fiduciary and Related Assets
Institutions should generally report fiduciary and related assets using their market value as of the report date. While
market value quotations are readily available for marketable securities, many financial and physical assets held in
fiduciary accounts are not widely traded or easily valued. If the methodology for determining market values is not set or
governed by applicable law (including the terms of the prevailing fiduciary agreement), the institution may use any
reasonable method to establish values for fiduciary and related assets for purposes of reporting on TR-102. Reasonable
methods include appraised values, book values, or reliable estimates. Valuation methods should be consistent from
reporting period to reporting period. This "reasonable method" approach to reporting market values applies both to
financial assets that are not marketable and to physical assets. Common physical assets held in fiduciary accounts
include real estate, equipment, collectibles, and household goods.
If two institutions are named co-fiduciary in the governing instrument, both institutions should report the account. In
addition, where one institution contracts with another for fiduciary or related services (i.e., Institution A provides custody
services to the trust accounts of Institution B, or Institution A provides investment management services to the trust
accounts of Institution B) both institutions should report the accounts in their respective capacities.
Exclude unfunded insurance trusts, testamentary executor appointments, and any other arrangements representing
potential future fiduciary accounts.
Asset values reported on TR-102 should generally exclude liabilities. For example, an employee benefit account with
associated loans against account assets should be reported gross of the outstanding loan balances. As another example,
an account with a real estate asset and corresponding mortgage loan should be reported gross of the mortgage liability.
However, there are two exceptions. First, for purposes of TR-102, overdrafts should be netted against gross fiduciary
assets. Second, the fair value of derivative instruments, as defined in ASC Topic 815, Derivatives and Hedging (formerly
FASB Statement No. 133), should be included in (i.e., netted against) gross assets even if the fair value is negative.
Securities borrowing/lending transactions should be reflected as sales or as secured borrowings according to ASC Topic
860, Transfers and Servicing (formerly FASB Statement No. 140). A transferee ("borrower") of securities generally is
required to provide "collateral" to the transferor ("lender") of securities. When such transactions do not qualify as sales,
securities "lenders" and "borrowers" should account for the transactions as secured borrowings in which cash (or
securities that the holder is permitted by contract or custom to sell or repledge) received as "collateral" by the securities
"lender" is considered the amount borrowed and the securities "loaned" are considered pledged against the amount
borrowed. For purposes of TR-102, securities held in fiduciary accounts that are "loaned" in securities lending
transactions (that are accounted for as secured borrowings) should be reported as an asset of the fiduciary account that
“loaned” the securities, but the “collateral” received should not also be reported as an asset of this fiduciary account.
In the Fiduciary and Related Assets section, the market value of Collective Investment Fund (CIF) units should be
reported along with individual participant accounts in the Column and Item that corresponds to each participant. The
aggregate amount of a CIF that is operated by an institution should NOT also be reported as a separate, additional
account in the Fiduciary and Related Assets section of this report.
Rev. 9/14
TR-102 Instructions
Page 1
STATE OF MISSOURI
DIVISION OF FINANCE
P.O. Box 716
Jefferson City, Missouri 65102-0716
TRUST COMPANY
FIDUCIARY AND RELATED SERVICES
TR-102 INSTRUCTIONS
General Instructions
Fiduciary and Related Services TR-102 should be completed on a fully consolidated basis including any subsidiary of the
reporting institution. Non-depository institutions with fiduciary and related services must complete the Fiduciary and
Related Assets section quarterly and the Memorandum section annually.
Fiduciary and Related Assets
Institutions should generally report fiduciary and related assets using their market value as of the report date. While
market value quotations are readily available for marketable securities, many financial and physical assets held in
fiduciary accounts are not widely traded or easily valued. If the methodology for determining market values is not set or
governed by applicable law (including the terms of the prevailing fiduciary agreement), the institution may use any
reasonable method to establish values for fiduciary and related assets for purposes of reporting on TR-102. Reasonable
methods include appraised values, book values, or reliable estimates. Valuation methods should be consistent from
reporting period to reporting period. This "reasonable method" approach to reporting market values applies both to
financial assets that are not marketable and to physical assets. Common physical assets held in fiduciary accounts
include real estate, equipment, collectibles, and household goods.
If two institutions are named co-fiduciary in the governing instrument, both institutions should report the account. In
addition, where one institution contracts with another for fiduciary or related services (i.e., Institution A provides custody
services to the trust accounts of Institution B, or Institution A provides investment management services to the trust
accounts of Institution B) both institutions should report the accounts in their respective capacities.
Exclude unfunded insurance trusts, testamentary executor appointments, and any other arrangements representing
potential future fiduciary accounts.
Asset values reported on TR-102 should generally exclude liabilities. For example, an employee benefit account with
associated loans against account assets should be reported gross of the outstanding loan balances. As another example,
an account with a real estate asset and corresponding mortgage loan should be reported gross of the mortgage liability.
However, there are two exceptions. First, for purposes of TR-102, overdrafts should be netted against gross fiduciary
assets. Second, the fair value of derivative instruments, as defined in ASC Topic 815, Derivatives and Hedging (formerly
FASB Statement No. 133), should be included in (i.e., netted against) gross assets even if the fair value is negative.
Securities borrowing/lending transactions should be reflected as sales or as secured borrowings according to ASC Topic
860, Transfers and Servicing (formerly FASB Statement No. 140). A transferee ("borrower") of securities generally is
required to provide "collateral" to the transferor ("lender") of securities. When such transactions do not qualify as sales,
securities "lenders" and "borrowers" should account for the transactions as secured borrowings in which cash (or
securities that the holder is permitted by contract or custom to sell or repledge) received as "collateral" by the securities
"lender" is considered the amount borrowed and the securities "loaned" are considered pledged against the amount
borrowed. For purposes of TR-102, securities held in fiduciary accounts that are "loaned" in securities lending
transactions (that are accounted for as secured borrowings) should be reported as an asset of the fiduciary account that
“loaned” the securities, but the “collateral” received should not also be reported as an asset of this fiduciary account.
In the Fiduciary and Related Assets section, the market value of Collective Investment Fund (CIF) units should be
reported along with individual participant accounts in the Column and Item that corresponds to each participant. The
aggregate amount of a CIF that is operated by an institution should NOT also be reported as a separate, additional
account in the Fiduciary and Related Assets section of this report.
Rev. 9/14
TR-102 Instructions
Page 2
Managed Assets – Column A
Report the total market value of assets held in managed fiduciary accounts. An account should be categorized as
managed if the institution has investment discretion over the assets of the account. Investment discretion is defined as the
sole or shared authority (whether or not that authority is exercised) to determine what securities or other assets to
purchase or sell on behalf of the fiduciary related account. An institution that delegates its authority over investments and
an institution that receives delegated authority over investments are BOTH deemed to have investment discretion.
Therefore, whether an account where investment discretion has been delegated to a registered investment adviser,
whether affiliated or unaffiliated with the reporting institution, should be reported as a managed account depends on
whether the delegation of investment authority to the registered investment adviser was made pursuant to the exercise of
investment discretion by the reporting institution. If so, the account is deemed to be a managed account by the reporting
institution. Otherwise, the account would be a non-managed account for purposes of reporting on TR-102.
An entire account should be reported as either managed or non-managed based on the predominant responsibility of the
reporting institution.
Non-Managed Assets – Column B
Report the total market value of assets held in non-managed fiduciary accounts. An account should be categorized as
non-managed if the institution does not have investment discretion. Those accounts for which the institution provides a
menu of investment options but the ultimate selection authority remains with the account holder or an external manager
should be categorized as non-managed. For example, an institution that offers a choice of sweep vehicles is not
necessarily exercising investment discretion. The process of narrowing investment options from a range of alternatives
does not create a managed fiduciary account for the purposes of this report. For example, a 401(k) employee benefit plan
where the participants select investments from a list of investment options should be reported as non-managed for the
purposes of this report.
Number of Managed Accounts – Column C
Report the total number of managed fiduciary accounts.
Number of Non-Managed Accounts – Column D
Report the total number of non-managed fiduciary accounts.
Fiduciary and Related Assets
Item No.
Caption and Instructions
1.
Personal trust and agency. Report the market value and number of accounts for all testamentary trusts,
revocable and irrevocable living trusts, other personal trusts, and non-managed personal agency accounts.
Include accounts in which the institution serves as executor, administrator, guardian, or conservator. Exclude
personal investment management and investment advisory agency accounts, which should be reported in TR-
102, item 4. Also exclude Keogh Act plans, Individual Retirement Accounts (IRAs), Health Savings Accounts,
and other pension or profit-sharing plans for self-employed individuals which should be reported in TR-102,
item 2. Personal accounts that are solely custody or safekeeping should be reported in item 8 of this report.
2.
Retirement-related trust and agency:
Employee benefit – defined contribution. Report the market value and number of accounts for all employee
2.a.
benefit defined contribution accounts in which the institution serves as either trustee or agent. Include 401(k)
plans, 403(b) plans, profit-sharing plans, money purchase plans, target benefit plans, stock bonus plans,
employee stock ownership plans, and thrift savings plans. Employee benefit accounts for which the institution
serves as a directed trustee should be reported as non-managed. The number of accounts reported should
reflect the total number of plans administered rather than the number of plan participants. Employee benefit
accounts that are solely custody and safekeeping accounts should be reported in TR-102, item 8.
Employee benefit – defined benefit. Report the market value and number of accounts for all employee
2.b.
benefit defined benefit plans in which the institution serves as either trustee or agent. Employee benefit
accounts for which the institution serves as a directed trustee should be reported as non-managed. The
number of accounts reported should reflect the total number of plans administered rather than the number of
Rev. 9/14
TR-102 Instructions
Page 3
plan participants. Employee benefit accounts that are solely custody and safekeeping accounts should be
reported in TR-102, item 8.
2.c.
Other employee benefit and retirement. Report the market value and number of accounts for all other
employee benefit and retirement-related fiduciary accounts in which the institution serves as trustee or agent.
Include Keogh Plan Accounts, Individual Retirement Accounts, Health Savings Accounts, Medical Savings
Accounts, and other pension or profit-sharing plans for self-employed individuals. Also report the market value
of assets and the number of accounts for employee welfare benefit trusts and agencies. Employee welfare
benefit plans include plans, funds, or programs that provide medical, surgical, or hospital care benefits;
benefits in the event of sickness, accident, disability, death, or unemployment; vacation benefits;
apprenticeship or other training programs; day care centers; scholarship funds; or prepaid legal services.
Employee benefit accounts for which the institution serves as a directed trustee should be reported as non-
managed. The number of accounts reported should reflect the total number of plans or accounts administered
rather than the number of plan participants. Other retirement accounts that are solely custody and
safekeeping accounts should be reported in TR-102, item 8.
3.
Corporate trust and agency. Report the market value of assets held by the institution for all corporate trust
and agency accounts. Report assets that are the responsibility of the institution to manage or administer in
accordance with the corporate trust agreement. Include assets relating to unpresented bonds or coupons
relating to issues that have been called or matured. Do NOT report the entire market value of the associated
securities or the outstanding principal of associated debt issues. Include accounts for which the institution is
trustee for corporate securities, tax-exempt and other municipal securities, and other debt securities including
unit investment trusts. Also include accounts for which the institution is dividend or interest paying agent, and
any other type of corporate trustee or agent appointment. Accounts that are solely custodial or safekeeping
should be reported in TR-102, item 8.
4.
Investment management and advisory agency. Report the market value and number of accounts for all
individual and institutional investment management and investment advisory agency accounts that are
administered within the fiduciary area of the institution. Investment management accounts are those agency
accounts for which the institution has investment discretion; however, title to the assets remains with the client.
Include accounts for which the institution serves as a sub-advisor. Investment advisory accounts are those
agency accounts for which the institution provides investment advice for a fee, but for which some other
person is responsible for investment decisions. Investment management agency accounts should be reported
as managed. Investment advisory agency accounts should be reported as non-managed. Investment
management and investment advisory agency accounts maintained for foundations and endowments should
be reported in TR-102, item 5. Exclude investment management and investment advisory agency accounts
that are administered in SEC-registered investment advisory subsidiaries of the institution. Include those
mutual funds that are advised by the fiduciary area that is a separately identifiable department or division (as
defined in Section 217 of the Gramm-Leach-Bliley Act). Classes of the same mutual fund should be combined
and reported as a single account.
5.
Foundation and endowment trust or agency. Report the market value and number of accounts for all
foundations and endowments (whether established by individuals, families, corporations, or other entities) that
file any version of Form 990 with the Internal Revenue Service and for which the institution serves as either
trustee or agent. Also include those foundations and endowments that do not file Form 990, 990EZ, or 990PF
solely because the organization’s gross receipts or total assets fall below reporting thresholds, but would
otherwise be required to file. Foundations and endowments established by churches, which are exempt from
filing Form 990, should also be included in this item. Employee benefit accounts maintained for a foundation’s
or endowment’s employees should be reported in TR-102, item 2. Accounts that are solely custodial or
safekeeping should be reported in TR-102, item 8.
6.
Other fiduciary. Report the market value and number of accounts for all other trusts and agencies not
reported in TR-102, items 1 through 5. Custody and safekeeping accounts should be reported in TR-102, item
8.
7.
Total fiduciary accounts. Report the sum of items 1 through 6.
8.
Custody and safekeeping. Report the market value and the number of accounts for all personal and
institutional custody and safekeeping accounts held by the institution. Safekeeping and custody accounts are a
type of agency account in which the reporting institution performs one or more specified agency functions but
Rev. 9/14
TR-102 Instructions
Page 4
the institution is not a trustee and also is not responsible for managing the asset selection for account assets.
These agency services may include holding assets, processing income and redemptions, and other
recordkeeping and customer reporting services. For employee benefit custody or safekeeping accounts, the
number of accounts reported should reflect the total number of plans administered rather than the number of
plan participants. Include accounts in which the institution serves in a sub-custodian capacity. For example,
where one institution contracts with another for custody services, both institutions should report the accounts
in their respective capacity.
Accounts in which the institution serves as trustee or in an agency capacity in addition to being custodian
should be reported in the category of the primary relationship. For example, personal trust accounts in which
the institution also serves as custodian should be reported as personal trust accounts and not as custodian
accounts. An institution should report an account only once in TR-102, items 1 through 6 and 8.
Report custodian accounts that are incidental to fiduciary services. Include those custody and safekeeping
accounts that are administered by the trust company, and those that are administered in other areas of the
institution through an identifiable business unit that focuses on offering fiduciary related custodial services to
institutional clients.
9.
Total fiduciary and non-fiduciary accounts. Report the sum of items 7 and 8.
Memoranda
Item No. Caption and Instructions
1.
Managed assets held in fiduciary accounts.
Column Instructions for Memorandum items 1.a through 1.p:
Column A, Personal Trust and Agency and Investment Management Agency Accounts: Report the
market value of managed assets held in (a) personal trust and agency accounts as defined for item 1 of the
Fiduciary and Related Assets section and (b) investment management agency accounts as defined for item 4
of the Fiduciary and Related Assets section.
Column B, Employee Benefit and Retirement-Related Trust and Agency Accounts: Report the market
value of managed assets held in employee benefit and retirement-related trust and agency accounts as
defined for items 2.a, 2.b, and 2.c of the Fiduciary and Related Assets section.
Column C, All Other Accounts: Report the market value of managed assets held in (a) corporate trust and
agency accounts as defined for item 3 of the Fiduciary and Related Assets section, (b) foundation and
endowment trust and agency accounts as defined for item 5 of the Fiduciary and Related Assets section, and
(c) other fiduciary accounts as defined for item 6 of the Fiduciary and Related Assets section.
Report in the appropriate column and in the appropriate subitem the market value of all managed assets held
in the fiduciary accounts included in the Fiduciary and Related Assets section, items 1 through 6, column A.
For units in common trust funds and collective investment funds that are held by a managed fiduciary account,
report the market value of the units in Memorandum item 1.h. Do not allocate the underlying assets of each
common trust fund and collective investment fund attributable to managed accounts to the individual subitems
for the various types of assets reported in Memorandum item 1.
Securities held in fiduciary accounts that are "loaned" in securities lending transactions (that are accounted for
as secured borrowings) should be reported as an asset of the fiduciary account that “loaned” the securities,
but the “collateral” received should not also be reported as an asset of this fiduciary account.
1.a.
Noninterest-bearing deposits. Report all noninterest-bearing deposits. Report noninterest-bearing deposits
of both principal and income cash.
1.b.
Interest-bearing deposits. Report all interest-bearing savings and time deposits. Include NOW accounts,
MMDA accounts, "BICs" (bank investment contracts) that are insured by the FDIC, and certificates of deposit.
Report interest-bearing deposits of both principal and income cash.
Rev. 9/14
TR-102 Instructions
Page 5
1.c.
U.S. Treasury and U.S. Government agency obligations. Report all securities of and/or loans to the U.S.
Government and U.S. Government corporations and agencies. Include certificates or other obligations,
however named, that represent pass-through participations in pools of real estate loans when the participation
instruments: (1) are issued by FHA approved mortgagees and guaranteed by the Government National
Mortgage Association, or (2) are issued, insured, or guaranteed by a U.S. Government agency or corporation
(e.g., the Federal Home Loan Mortgage Corporation's Mortgage Participation Certificates). Collateralized
mortgage obligations (CMOs) and real estate mortgage investment conduits (REMICs) issued by the Federal
National Mortgage Association (FNMA) ("Fannie Mae") and the Federal Home Loan Mortgage Corporation
(FHLMC) ("Freddie Mac") should be included.
1.d.
State, county, and municipal obligations. Report all short and long-term obligations of state and local
governments, and political subdivisions of the United States. Include obligations of U.S. territories and insular
possessions and their political subdivisions and all Federal income tax exempt obligations of authorities such
as local housing and industrial development authorities that derive their tax-exempt status from relationships
with State or local governments. Tax-exempt money market mutual funds should be reported with money
market mutual funds in Memorandum item 1.e.
1.e.
Money market mutual funds. Report all holdings of mutual funds registered under the Investment Company
Act of 1940 that attempt to maintain net asset values at $1.00 per share. Include taxable and tax-exempt
money market mutual funds. Exclude short-term collective investment funds.
1.f.
Equity mutual funds. Report all holdings of mutual funds registered under the Investment Company Act of
1940, exchange traded funds (ETFs), and unit investment trusts (UITs) that invest primarily in equity
securities. For purposes of Memorandum item 1, institutions should categorize these investments on the basis
of either the fund’s investment objective as stated in its prospectus or the fund’s classification by a company
that tracks information on these funds such as Morningstar and Lipper. An institution’s methodology for
categorizing mutual fund, ETF, and UIT investments should be consistently applied.
1.g.
Other mutual funds. Report all holdings of all other mutual funds registered under the Investment Company
Act of 1940, ETFs, and UITs. For purposes of Memorandum item 1, institutions should categorize these
investments on the basis of either the fund’s investment objective as stated in its prospectus or the fund’s
classification by a company that tracks information on these funds such as Morningstar and Lipper. An
institution’s methodology for categorizing mutual fund, ETF, and UIT investments should be consistently
applied.
1.h.
Common trust funds and collective investment funds. Report all holdings of all common trust funds and
collective investment funds. Common trust funds and collective investment funds are funds that institutions are
authorized to administer under Section 362.580 RSMo.
1.i.
Other short-term obligations. Report all other short-term obligations (i.e., original maturities of less than 1
year, or 13 months in the case of the time portion of master notes). In addition to short-term notes, this also
includes money market instruments such as master note arrangements, commercial paper, bankers
acceptances, securities repurchase agreements, and other short-term liquidity investments. Exclude state,
county, and municipal obligations.
1.j.
Other notes and bonds. Report all other bonds, notes (except personal notes), and debentures. Include
corporate debt, insurance annuity contracts, "GICs" (guaranteed investment contracts), "BICs" (bank
investment contracts) that are not insured by the FDIC, and obligations of foreign governments. Also include
certificates or other obligations, however named, representing pass-through participations in pools of real
estate loans when the participation instruments are issued by financial institutions and guaranteed in whole or
in part by private guarantors. Collateralized mortgage obligations (CMOs) and real estate mortgage investment
conduits (REMICs) which are not issued by the Federal National Mortgage Association (FNMA) ("Fannie
Mae") and the Federal Home Loan Mortgage Corporation (FHLMC) ("Freddie Mac") should be reported here,
even if the collateral consists of GNMA ("Ginnie Mae") or FNMA pass-throughs or FHLMC participation
certificates. Exclude short- term obligations which should be reported in Memorandum item 1.i, above.
1.k.
Investments in unregistered funds and private equity. Report all holdings of funds exempt from
registration under Sections 3(c)(1) or 3(c)(7) of the Investment Company Act of 1940, for example, “hedge
funds.” Report all holdings of private equity investments exempt from registration under Securities Act of 1933
Regulation D. Private equity investments is an asset class consisting of purchased equity securities in
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