AIB Course Code: 8325
Course Length: 15 weeks with mid-term and final examinations
Course Description:
This course is a comprehensive survey and introduction to the organizational operations of the trust industry. It describes the products and services associated with the operations of a trust institution, how those products and services are managed, and how trust operations professionals can provide effective service to their associates and customers, both current and potential.
Audience:
Entry-level trust personnel (personal, corporate, employee benefits) at both the officer and non-officer level.
Learning Objectives:
After successfully completing this program, you will be able to:
- Trace the historical development of the trust business; define the elements of a trust; analyze personal trust and agency business; describe charitable trusts; contrast the basic employee benefit plans; compare trusts and agencies; and describe trust institution organization
- Compare stock to preferred stock; understand fixed-income bond investments; define cash equivalents; and describe investment management companies
- Explore the primary and secondary securities markets; identify how securities are classified by a numbering system; and analyze measurement of investment performance
- Describe how securities are acquired and disposed of; and compare securities ownership rights and powers
- Describe how securities are traded, settled, and delivered; explain how depositories function and how trust organizations use them; and trace the activities of securities transfers
- Explain what is involved in establishing an account; describe departmental record keeping; explore the internal reporting used by a trust organization; and analyze the various records provided to customers
- Identify basic trust accounting functions; compare various accounting activities to an individual account level; and describe accounting activities on a fund level
- Define the basic internal controls instituted by trust organizations; identify the external controls employed by trust institutions; explain the trust accounting controls used to check daily transactions; and describe the trust accounting reconciliation methods used to balance records
- Contrast asset and liability transactions; analyze the processing of free transactions; apply buys and sells from an accounting perspective; and describe the accounting functions associated with securities transactions
- Describe cash management; identify cash transactions in trust accounts; and explain how collective fund accounting is accomplished
- Define the terminology associated with record keeping; identify the various records and files maintained by trust organizations; describe record keeping methods; explain the purpose of record file maintenance; and describe the various reports provided to and on behalf of customers
- Contrast state and national (federal) regulatory jurisdiction; and explain the rating systems used in the examinations of trust organizations
Textbook:
All reading materials are provided online.
Topics Covered:
- Chapter 1 The Business of Trust
- Chapter 2 Securities Vehicles
- Chapter 3 Mechanics of the Securities Industry
- Chapter 4 Corporate Actions
- Chapter 5 Securities Processing
- Chapter 6 Account Management
- Chapter 7 Trust Accounting
- Chapter 8 Trust Accounting Controls
- Chapter 9 Accounting for Asset and Liability Transactions
- Chapter 10 Accounting for Cash Transactions
- Chapter 11 Trust Records, Files, and Reporting
- Chapter 12 Regulators, Regulations, and Examinations
Course Credits: AIB: 3.0; ICB: 45 (CCTS or CSOP)
Prerequisites: None
Software: None
