A GUIDE TO ETHICS FOR TRUST PROFESSIONALS

Transcription

1 A GUIDE TO ETHICS FOR TRUST PROFESSIONALS AUDIENCE: Trust officers and other trust department personnel. Ethical behavior is a consideration that applies to every aspect of a professional relationship with a client. This four-course curriculum addresses today's ethical concerns by using examples to explain how to apply appropriate behaviors to common situations that exist when working with trust clients. Course exercises provide opportunities to apply knowledge using realistic client scenarios. The series covers: Financial Planning Tax Law and Tax Planning Fiduciary and Trust Activities Investments A Guide to Ethics in Fiduciary and Trust Activities This course provides ways to apply the duties of the trustee to client scenarios concerning ethical behavior and unauthorized and permitted transactions. It outlines the reasonable steps for the trustee to enforce and defend any claim as a duty to the beneficiary. In addition, this course provides guidelines should a breach of trust occur and offers solutions. It also lists several tools under the Uniform Trust Code (UTC) that can be used to manage fiduciary risk. This course examines the distinctions between an agency and a fiduciary relationship. After completing this course, students will be able to: Describe the duties of the trustee to beneficiaries, including the duty of loyalty and the duty to enforce and defend claims Explain trustee liability in the event of a breach of trust and remedy options Describe tools provided under the Uniform Trust Code (UTC) that trustees can use to manage fiduciary risk Explain the differences between an agency and a fiduciary relationship Delivery Methods Available: Online A Guide to Ethics in Financial Planning This course introduces ethical standards as they apply to assisting the client and the advisors in developing an organized and comprehensive financial plan. It provides specific courses of action to prevent conflicts of interest and the potential to affect objectivity. This course examines compensation arrangements in financial planning that should be fully disclosed to the client. After completing this course, students will be able to: Describe guidelines to avoid conflicts of interest Define the role of the financial planner Describe the most common compensation arrangements in financial planning Delivery Methods Available: Online 4

2 (A GUIDE TO ETHICS FOR TRUST PROFESSIONALS Continued) A Guide to Ethics in Investments This course details the purpose of the laws that relate to ethical conduct for an investment manager. It stresses the importance of the trust officer to uphold the fiduciary duty to the trust by concentrating on trustee duties, custody of client assets, and recognizing the penalties for violating fiduciary duties. In addition, this course explores what constitutes conflicts of interest and how to avoid them, and provides information on the Uniform Prudent Investor Act (UPIA). This course offers other guidelines to help ensure ethical behavior in trustee investment activities such as self-dealing, equal treatment of accounts, and soft dollar services. After completing this course, students will be able to: Describe laws that pertain to ethical behavior for an investment manager Identify trustee duties relating to investment activities and penalties for violating fiduciary duties Describe common violations of conflict of interest when managing investments Explain prudent investor guidelines, including the prudent man standard, the prudent expert standard, and the Uniform Prudent Investor Act Delivery Methods Available: Online A Guide to Ethics in Tax Law and Tax Planning This course addresses the duties of the fiduciary that is to hold the assets, administer them, and carry out the terms with a duty of loyalty, impartiality, and reasonable care. It also explores the possible conflicts between investments and the prudent investor rule. This course focuses on the avoidance of the unauthorized practices of law by providing guidelines as to what activities are permitted. After completing this course, students will be able to: Describe the duties of the fiduciary Describe how the duties of loyalty and impartiality impact the client relationship Explain possible conflicts between investments and the prudent investor rule Identify activities that constitute the unauthorized practice of law Delivery Methods Available: Online 5

3 ABA Certificate in Lending Compliance Earning the ABA Certificate in Lending Compliance demonstrates to bank management and examiners your thorough grounding in key lending regulations, and ability to identify and respond to compliance requirements. The complete 14-course curriculum is available for study at your own pace, delivered via desktop, laptop, ipad or other tablet. Delivered through a combination of instructor videos, exercises and self-assessments accessible via your computer or most tablets, all courses are led by ABA experts and seasoned ABA Compliance Schools faculty. Complete all 15* Online Courses for Compliance Professionals to earn the certificate and up to 31 CRCM credits that may be used to obtain or maintain your certified regulatory compliance manager (CRCM) designation. Your purchase includes unlimited one year access to all course content, including all available course updates reflecting new rule issuances and regulation changes made within that year. REQUIRED COURSES (see individual course descriptions for more information): Anatomy of a Regulation Community Reinvestment Act, Community Bank (CRA)* Community Reinvestment Act, Large Bank (CRA)* Credit Card Regulations Elements of a Compliance Program Equal Credit Opportunity Act (ECOA) Reg B Fair Credit Reporting Act (FCRA) Home Mortgage Disclosure Act (HMDA) Loans to Insiders (Reg O) National Flood Insurance Regulations Real Estate Settlement Procedures Act (RESPA) Reg Z Closed-End Credit Reg Z Open-End Credit Servicemembers Civil Relief Act (SCRA) Unfair, Deceptive or Abusive Acts or Practices (UDAAP) *Choose either CRA, Large Bank or CRA, Community Bank to complete requirements to earn the ABA Certificate in Lending Compliance. Your purchase includes access to both CRA, Large Bank and CRA, Community Bank, but you are only required to take one of these courses to earn the certificate. ABA Online Review for the CRCM Examination 7335 AUDIENCE: This course is designed for those compliance professionals preparing for the Certified Regulatory Compliance Manager (CRCM) Exam. The Certified Regulatory Compliance Manager (CRCM) is applicable to financial services professionals whose primary function and expertise focus on the application, implementation and maintenance of relevant federal and state regulatory requirements as they relate to a financial services organization s business. After successfully completing this course, you should be familiar with all of the federal laws and regulations in the following areas: Deposit Lending Information Reporting Bank Operations Safety and Soundness Social Responsibility Setting up a Compliance Program TEXT: Reference Guide to Regulatory Compliance, 2013, ABA Recommended Instructional Hours: 8 Weeks Recommended AIB Credits: 1 Delivery Methods Available: Online 6

4 ABA Online Review for the CTFA Examination AUDIENCE: This course is designed for those preparing for the Certified Trust and Financial Advisor (CTFA) Exam. The Certified Trust and Financial Advisor (CTFA) is applicable to financial services professionals whose primary function and expertise focus on the provision of fiduciary services related to trusts, estates, guardianships and individual asset management accounts. After successfully completing this course, participants should be familiar with the following areas: Fiduciary and Trust Activities Tax Law and Tax Planning Investments Management Financial Planning TEXT: Wealth and Advisory Personal Trust Services, 2013, ABA Recommended Instructional Hours: 12 Weeks Delivery Methods Available: Online ABA Wealth Advisory and Personal Trust Series The four workbooks in the 2013 Wealth Advisory and Personal Trust Series are one of the most comprehensive resource guides for trust professionals. They offer exceptional preparation that can help candidates planning to sit for the Certified Trust and Financial Advisor (CTFA) exam. Each section in every workbook has chapter review questions and answers, a sample test and answers, and a list of additional resources on the Internet and in print. These workbooks were just updated to reflect current updates and introduce new legislative initiatives. Each workbook can be purchased individually for those concentrating on or needing a refresher on a specific area of the trust market. And all 4 workbooks in the series can be purchased at a discount. The workbooks are the reading materials for the ABA Online Review Course for the CTFA Exam. The ABA Fiduciary and Trust Activities Workbook covers: Trust and Probate Law and Custom, Investment Responsibilities of a Trustee, Environmental Law, and Ethics. The ABA Financial Planning Workbook covers: Personal Finance, Life Insurance, Other Types of Insurance, Retirement Planning, Estate Planning, and Ethics. The ABA Investment Management Workbook covers: Economics and Markets, Equity Markets, Debt Markets, and Portfolio Management, Alternative Investments, Investment Policy, Performance Measurement and Evaluation, and Ethical and Legal Consideration. The ABA Tax Law and Tax Planning Workbook covers: Overview of the Current Tax Laws, Individual Income Tax, Income Taxation of Fiduciaries, Income Taxation and Charitable Entities, Federal Estate Taxation, Federal Gift Tax, Generation Skipping Transfer Tax, Planning for Gifts, Planning for Credit Shelter and Marital Trusts, Effective Planning for GST, Postmortem Planning, Planning for Retirement Benefits, Estate Planning for the Closely Held Business, Ethical Considerations. See the Textbook Pricing section of the Resource Guide for pricing information. 7

5 Americans with Disabilities Act (ADA) 0582 AUDIENCE: Bank employees who interact with customers, vendors, or other bank personnel. This AIB course focuses on Title I and Title III of the Act. It explains the changes made by the enactment of the Americans with Disabilities Act Amendment Act (ADAAA). This course defines the term disability by using examples and exercises throughout the learning. It also defines essential functions and reasonable accommodations, and provides general disability etiquette guidelines. Recent updates include new content related to Title III Public Accommodations, the six obligations on banks that ADA imposes, and recently enacted rules concerning ATM accessibility. Recommended Instructional Hours: 1 Analyzing Bank Performance 7522 AUDIENCE: Junior level bank officers up through CEOs who need the analytical tools to analyze bank performance. As part of the class, participants analyze the performance of their own bank. PREREQUISITE: Law & Banking: Principles is highly recommended, but not required. Participants should have previously taken a basic accounting course and must have experience using Microsoft Excel. Analyzing Bank Performance provides participants with all of the tools needed to analyze their bank s financial performance. During this class, participants will analyze their own bank s performance. After successfully completing this program, you will be able to: Identify the key balance sheet and income items for a bank Analyze the profitability of various lines of business within the bank using a variety of measures Utilize the concepts of economic value-added and the balanced scorecard in assessing your bank s performance Evaluate customer profitability within the bank TEXT: Bank Management, 7th Edition 2010, by Timothy W. Koch and S. Scott MacDonald Recommended Instructional Hours: 7 Weeks Recommended AIB Credits: 2 Delivery Methods Available: Online 8

6 Analyzing Financial Statements 6920 AUDIENCE: Commercial and/or business bankers and credit analysts. PREREQUISITE: General Accounting This AIB course focuses on understanding business industries and types, plus why they borrow money. It also introduces basic concepts of business financial accounting and entity structures and explains the analysis of business financial statements and tax returns, including cash flow statements. Finally, the course discusses personal financial statements and tax returns, as well as combining business and personal cash flows into a global analysis. Analyze the financial data and evaluate the risks of the different industries Explain the different types of financial statement preparation Describe operating expenses and net profit analysis Identify balance sheet considerations Explain how to use industry data when performing a ratio analysis Identify cash flow statements and reports Describe why a cash budget is a critical tool of financial statement analysis Calculate and interpret the liquidity ratio, unsecured debt ratio, and debt-to-income (DTI) ratio Use tax return information to develop a personal cash flow Develop a global cash flow and global DSC for a borrower. TEXT: Analyzing Financial Statements A Decision Tree Approach, Part 1, 2013, ABA Recommended Instructional Hours: 16 Weeks Recommended AIB Credits: 3 Delivery Methods Available: Online Anatomy of a Regulation for Compliance Professionals AUDIENCE: Compliance professionals including compliance managers, officers, and other compliance team members whose primary role is within the compliance function at their financial institution; bank examiners, bank regulators, auditors and lending compliance professionals. The purpose of this course is to provide an overview of federal laws and regulations, as they apply to the banking industry. You will learn about the purpose and structure of banking laws and regulations and the relationship between laws and regulations. You will also learn about the legislative process and the steps in the rulemaking process. In addition, you will learn about the standard means for referencing a citation and how to research regulations using the Code of Federal Regulations. Finally, you will learn about sources of guidance and practical tips on how to navigate and research federal laws and regulations. At the end of the course is a summary of resources that will help you understand and interpret the impact of banking laws and regulations. After completing this course, students will gain a fundamental understanding of Anatomy of a Regulation for Compliance Professionals and learn how to: Explain the purpose of federal banking laws and regulations Explain how bills become law and describe the structure of a typical law Describe the structure and format of regulations Identify sources of guidance and practical tips for understanding and interpreting federal laws and regulations Recommended Instructional Hours: 1 hour 40 minutes CRCM Credits: 2.0 9

7 Appraisal Procedures AIB COURSE DESCRIPTIONS AUDIENCE: Lending operations staff, including: Loan Originators, Underwriters, Processors The appraisal is an important part of the mortgage process. Understanding the appraiser's role, responsibilities and processes will help you better serve your customers and help identify and prevent mortgage fraud. You will first learn what lenders need to know about appraisers. You will learn about the qualifications one must meet to become an appraiser, review best practices of an appraiser in the field and review types of mortgage fraud and current fraud trends. Next, you will take a look at the valuation process, from defining important terms, understanding appraiser responsibilities during the process, explaining the Scope of Work Rule of USPAP and more. Understand the history of appraising and appraiser licensing List the particular agencies that have oversight and who are responsible for appraiser licensing and certification Define what an appraiser is and what an appraiser does List the qualifications that need to be met to become an appraiser Identify what an appraiser can and cannot do Explain which categories of appraisers are eligible to appraise various property types Define fraud Distinguish various kinds of fraud, including appraisal fraud, bank fraud, and mortgage fraud Explain the current trends in mortgage fraud Understand the valuation process Define terms "client" and "intended user" Identify how these terms affect the relationship between the lender and appraiser Explain the responsibilities appraisers have when appraising a property for a new client Explain the responsibilities appraisers have when asked to transfer a report to a new client Know the difference between extraordinary assumptions and hypothetical assumptions Understand the scope of work Define the Scope of Work Rule of USPAP Summarize the concept of "scope of work" List items, such as property type, that affect scope of work Recommended Instructional Hours: 1 Bank Secrecy Act 7209 AUDIENCE: All bank employees who need an understanding of core Bank Secrecy Act requirements. This course has been updated to include information regarding human smuggling and human trafficking, remove references to the filing of paper CTRs, SARs, and DOEP forms, and add the new FinCEN E-filing requirements. It provides a description of the impact of financial crime. It stresses how important it is to implement key compliance program elements and Customer Identification Program (CIP) elements. This course describes the reporting responsibilities that are part of the Act including identifying transactions that require completion of a Currency Transaction Report (CTR) and a Suspicious Activity Report (SAR). The course provides guidelines for answering basic customer questions related to BSA procedures, and provides an opportunity to practice with real-life customer situations. It also describes the higher-risk money laundering schemes to be aware of. Recognize the historical milestones that contributed to the expansion of the BSA Describe the impact of financial crime and key compliance program elements banks must implement to combat financial crime. Identify the minimum required elements of a Customer Identification Program (CIP) Identify the most common record keeping requirements under the BSA Identify circumstances when Currency Transaction Reports (CTRs) should be filed Describe the scope of activities appropriate for Suspicious Activity Report (SAR) filing Recommended Instructional Hours: 1 10

8 Bank Secrecy Act for Lenders AIB COURSE DESCRIPTIONS AUDIENCE: All bank employees who need an understanding of core Bank Secrecy Act requirements. This course has been updated to include information regarding Human Smuggling and Human Trafficking. (IMPORTANT: information on human trafficking was added to add variety and currency to this course. The Frontline BSA courses are not; however, designed to teach all the typologies of money laundering: this remains the responsibility of each financial institution. Bank Secrecy Act (BSA) for Lenders provides information on the BSA efforts to guard against illegal financial activity as it relates to lending positions. This course describes what is needed to implement an effective compliance program. This course focuses on what is required as part of Suspicious Activity Reporting and the Customer Identification Program (CIP). This course also explains what the BSA requires in preparing bank employees to know their customers, be familiar with their banking habits, and recognize when they are deviating from their normal routines. It describes the higher-risk money laundering schemes to be aware of. Discuss the fundamental components of the bank's BSA responsibilities Explain why terrorism financing is often difficult to detect Describe four elements banks are required to implement as part of a compliance program Identify the minimum required elements of a Customer Identification Program (CIP) Describe the scope of activities appropriate for SAR filing Answer some basic customer questions about the procedures related to the BSA Describe some of the newer higher-risk money laundering concerns Recommended Instructional Hours: 2 Bank Service Provider Certificate The AIB Bank Service Provider Certificate is designed for individuals employed by companies that provide products and services to the banking industry. Bank service providers need a broad understanding of the banking business, including banking terminology, and can benefit from the same content used by the institutions they will be selling to and servicing. This curriculum provides participants with an understanding of the major types of customers banks serve, the principal product lines that banks provide to those customers, the organization of a typical bank, key functions and processes within a bank, how a bank makes money, and the regulatory environment in which banks operate. All individual courses listed below must be successfully completed in order to earn the AIB Bank Service Provider Certificate Banking Today OR it can also be taken entirely online as a self-paced (elearning) certificate curriculum: Banking Today Ethical Issues for Bankers Fundamentals of Consumer Lending Fundamentals of Small Business Banking Regulatory Compliance for Personal Bankers Understanding Bank Products Recommended AIB Credits: 2.5 elearning Curriculum Course 11

9 Bank Teller Certificate Curriculum AIB COURSE DESCRIPTIONS The curriculum for the AIB Bank Teller Certificate is centered on AIB Today s Teller, which is designed to onboard newly hired tellers and addresses the critical technical skills of the position. In addition to handling money well, effective tellers must be service-oriented and work effectively with the public as well as with co-workers. The remaining courses in the Certificate address practical knowledge and applied skills in banking, regulatory compliance for tellers, and customer service and sales. The AIB Bank Teller Certificate can be the foundation for a new teller training program, on-board a new hire, and supplement your bank's on-the-line training. It can also provide recognition and a career path for experienced tellers as it meets the pre-certification education requirements for the Certified Bank Teller (CBT) designation through the Institute of Certified Bankers (ICB). All individual courses listed below must be successfully completed in order to earn the AIB Bank Teller Certificate OR it can also be taken entirely online as a self-paced (elearning) certificate curriculum: Banking Today Business Etiquette Dealing Effectively with Co-Workers Effective Client Referrals Ethical Issues for Bankers Introduction to Relationship Selling Regulatory Compliance for Tellers Revitalizing Customer Service Today s Teller Recommended AIB Credits: 3.75 elearning Curriculum Course Banking Today 1325 AUDIENCE: Bank personnel new to the banking industry at all levels, specialists in non-banking functions such as marketing, information systems and human resources. This AIB course introduces new employees to the essential principles, concepts and operations of banking. This course explores the impact of banking on the economy, trends on how banks operate as a business, as well as developing trends in banking today. It provides a "big picture" perspective of the financial services industry and banking. Define the administrative and functional lines for most banks Describe the Federal Reserve's organization and function Explain how banks operate as a business to make a profit Summarize important federal laws and regulations affecting bank operations and practices Examine the categories of bank products and services Describe bank challenges in the financial marketplace and trends likely to affect the future of banking. Recommended Instructional Hours: 2.5 Recommended AIB Credits:

10 Basic Administrative Duties of a Trustee 8263 AUDIENCE: Those employees who have recently joined the trust department in support positions, non-trust personnel within the bank who work with trust officers and trust clients, as well as employees of service providers to trust companies who want to develop a better understanding of their clients' business needs. A fiduciary has a duty to hold the assets of an estate or trust, to administer the assets solely in the interest of the beneficiaries, and to carry out the terms of the trust. Many of the specific categories of duties that fall under these broad classifications will be discussed in this course including basic trust administration, agency relationships, guardianships, and wills and the probate process. Discuss a trustee's standard of performance Explain the basic principles of administration Analyze administrative duties directed internally by a trust Describe external factors associated with the administration of a trust Define the purpose of state trust statutes Describe an agency relationship Explain the forms of agencies and their features Explain the attributes of using a trust department as an investment manager Define incapacitation Distinguish the types of guardians and guardianships List the duties of an estate guardian Describe the newer forms of guardianships Compare healthcare and property directives Explain what a will is and contrast the differences between dying testate and dying intestate Describe who can establish a will, what testamentary capacity is, and how a will can be contested Determine how a will can be changed Define probate List the steps and timetable involved in the administration and settlement of an estate Define and use the terms that appear in bold in the text TEXT: All reading materials are delivered online Recommended Instructional Hours: 5 Weeks Recommended AIB Credits: 1 Delivery Methods Available: Online 13

11 Building & Retaining Customer Relationships 6494 AUDIENCE: Banking professionals who currently sell bank products to customers. Students attending this class should have a working knowledge of their institution's products and services, basic sales techniques, daily planner scheduling, and tele-consulting. Part 1 - Process and Strategy Building and Retaining Customer Relationships--Process and Strategy provides tools on how to start, manage, and execute a sales portfolio. This course explains the process and strategies behind the sales portfolio process, from prioritizing clients to making sales calls. It presents sales portfolio techniques and strategies that have been proven effective. Throughout the course, students will review how to recognize, classify, and prioritize clients according to sales potential profiles. Part 2 - Calling on Clients Building and Retaining Customer Relationships--Calling on Clients explains how to use forms in the sales portfolio and apply other organizational principles. This course also teaches how to plan sales calls or contacts with portfolio clients. The strategic sales initiative in this course allows institutions to increase client satisfaction, promote client retention, and boost sales. After successfully completing Part 1: Process and Strategy, you will be able to: Describe the benefits of building and retaining client relationships through a well-managed portfolio Identify the steps of the portfolio process Set criteria that support sales and client retention Assess sales potential of clients Group clients in a portfolio After successfully completing Part 2: Calling on Clients, you will be able to: Organize a portfolio to support and track activity Plan for starting a portfolio at work Prepare for the initial contact with clients Recommended Instructional Hours:

12 BUILDING TRUST EXPERTISE ABA s Building Trust Expertise, taken with Ethical Issues for Bankers, lead to the AIB Personal Trust Diploma. Completion of all 20 courses, plus Ethical Issues for Bankers also provides the industry s only online precertification education necessary to sit for Certified Trust and Financial Advisor (CTFA) certification through ABA s Institute of Certified Bankers (ICB). Students can take courses individually, to address specific job skills and knowledge. They also can work their way through Building Trust Expertise Level 1, Level 2, and Level 3 to qualify to sit for the CTFA examination. Banks can license the program for inhouse delivery to a group of trust employees. Contact the NBA Education Center at or educ@nebankers.org for information about licensing. Building Trust Expertise Level 1 is designed to enhance the knowledge and improve the skills of trust administrators and other officers who service and refer trust clients. The curriculum is composed of three individual courses that provide students with an in depth understanding of the basics of trust administration, estate and tax planning and investment management principles, focusing on the responsibilities required for effective fiduciary oversight. Audience: Trust department and other bank staff who are new to the trust business and want to develop a basic working knowledge of trust administration. No prior knowledge of the subject is required. Introduction to Estate Planning 8328 This program provides an overview of the taxation and estate planning issues that affect personal trusts. It covers basic fiduciary income tax and the role of transfer taxes in basic estate planning. After completing this course, students will be able to: Define basic terms Explain how trusts are taxed Calculate distributable net income Minimize transfer taxes Calculate gift, estate, and generation-skipping transfer taxes Describe why estate planning is important Identify considerations when developing an estate plan Recommended Instructional Hours: 6 Recommended AIB Credit: 0.50 Introduction to Investment Management 8327 This course provides an overview of the investment management issues that affect personal trusts. It covers investment types; stock and bond selection/analysis; investment portfolio management; and economic and legal influences on investments. After successfully completing this course, students will be able to: Define the types of investments used in trusts that fall within these categories: cash and liquid, fixed income, equity, mutual fund, and other investments Describe the methods used to select and analyze stock and bond investments Explain the mechanics of portfolio management Identify key client information to help clients determine investment portfolio considerations Describe economic influences regarding trust investments, including the Federal Reserve, business cycles, and economic indicators Explain the legal considerations that affect actions regarding trust investments Recommended Instructional Hours: 3.5 Recommended AIB Credit:

13 (BUILDING TRUST EXPERTISE Level 1 Continued) Introduction to Trust Administration 8329 This course provides an overview of trust administration for personal trusts and is designed to help new trust professionals identify key issues and use common trust terminology appropriately. It covers trust basics, including requirements to create a trust and common types of personal trusts; account acceptance and termination considerations; and factors to consider before making discretionary distributions. After successfully completing this course, students will be able to: Explain how property ownership impacts trusts Explain basic trust concepts and terminology Discuss personal trusts Describe account acceptance and termination procedures Explain the considerations for discretionary distributions Recommended Instructional Hours: 2 Recommended AIB Credit: 0.25 Building Trust Expertise Level 2 builds on the knowledge learned in BTE Level 1 and are designed for trust personnel who manage accounts for which the financial institution acts as the personal representative of an estate, a trustee, a guardian of assets of minors or an agent under an investment management arrangement. Audience: Trust Officers who have completed Building Trust Expertise Level 1, and have one to two years expertise in the trust field. Discretionary Distributions 8400 This course introduces the basic principles of discretionary distributions. It covers the reasons for making discretionary distributions and the trustee's authority to make them, as well as distribution standards, tax consequences, and other potential liabilities involved in making discretionary distributions. After successfully completing this course, students will be able to: Identify the relevant factors to consider in making discretionary distributions Identify and interpret the standards applied in exercising discretionary powers Describe the potential tax consequences of making discretionary distributions Explain the effects of special considerations such as attachment by creditors, spendthrift clauses, and disabled or incapacitated beneficiaries Recommended Instructional Hours: 3 Recommended AIB Credit:

14 (BUILDING TRUST EXPERTISE Level 2 Continued) Estate Planning for Marital Deduction This course is designed to reinforce strategies for the optimum use of the marital deduction. By comparing marital formulas, students will learn to determine which marital deduction trusts to use for particular client needs. After completing this course, students will be able to: Recognize a marital deduction, its value, and requirements for property to qualify for the marital deduction Compare strategies for optimum use of the marital deduction depending on the client's tax and non-tax preferences (maximum deduction, optimum A-B plan, equalizing marital estates) Describe the purpose of the different marital formulas used to calculate the marital deductions, when each is commonly used, and factors to consider in selecting a formula Identify the purposes, features, and requirements of the commonly used marital trusts and recommend which would best serve your clients' needs Recommended Instructional Hours: 2 Recommended AIB Credit: 0.50 Estate Planning Overview 8401 This course presents the basic knowledge to enable Trust Officers to recognize the needs of clients in order to determine an estate plan with tax or non-tax considerations. The course also reinforces the consequences of the unauthorized practice of law. After completing this course, students will be able to: Examine the goals of estate planning as part of a client's overall financial strategy Identify non-tax considerations as relevant to estate planning Recognize the consequences of engaging in the unauthorized practice of law Recommended Instructional Hours: 2 Federal Estate and Gift Taxes 8403 This course provides the knowledge necessary to discuss the implications of federal estate and gift taxes, and to answer common taxrelated client questions. After successfully completing this course, students will be able to: Identify the types of property included in the gross estate Explain the principles of valuing property in the gross estate Identify property that may be subject to a discount in valuation List deductions, exclusions, and credits that apply to either the estate or gift tax Describe transfers that are subject to the gift tax Calculate estate or gift tax due Recommended Instructional Hours: 5 Recommended AIB Credit:

15 (BUILDING TRUST EXPERTISE Level 2 Continued) Fiduciary Income Tax 8404 This course provides you with an understanding of tax terminology and concepts applicable to estates and trusts. It describes how to calculate the various measures of income and deductions related to income taxes After successfully completing this course, students will be able to: Distinguish between simple and complex trusts Explain the concept of the fiduciary account as a conduit Explain the basic concept and purpose of distributable net income (DNI) Calculate trust accounting income Calculate distributable net income (DNI) Calculate the distribution deduction Determine the amount of income taxable to each beneficiary Recommended Instructional Hours: 4 Recommended AIB Credit: 0.25 Fiduciary Law 8405 This course presents key regulations and rules that govern trusts and estates, including federal laws and model acts being adopted by different states. It covers the duties and powers of a trustee, as well as investment standards and duties. The prudent man/person rule, prudent investor rule, and Uniform Principal and Income Act are also discussed. After successfully completing this course, students will be able to: Explain the sources of governance for institutional trustees Identify federal laws that affect trusts and explain their impact Describe key duties, powers, and liabilities of trustees Explain the prudent investor standard of conduct under the prudent man/person and prudent investor rules, and describe the general investment duties of fiduciaries Explain key provisions of the Principal and Income Act Recommended Instructional Hours: 4 Recommended AIB Credit: 0.25 Investments I 8406 Investments I focuses on an overall discussion of investment risk, organization of the investment decision process, regulatory influences for investments and the similarities and differences of commingled funds and mutual funds investments. Note: This course is not intended to train students to become the sole-providers of investment information to clients. Instead, students should become familiar with a big-picture view of investments to better serve and address clients' needs. Students should still follow any internal bank policy or procedures regarding the discussion of investments and referrals to internal support associates. After successfully completing this course, students will be able to: Explain the various tools used in organizing the investment decision Identify the regulatory influence for investments Describe the similarities and differences of commingled funds and mutual funds Discuss various forms of investment risk Recommended Instructional Hours: 4 18

16 (BUILDING TRUST EXPERTISE Level 2 Continued) Managing Trust Accounts 8408 This course introduces the student to the basic principles of establishing trust accounts and managing receipts and payments for these trusts It covers the procedures for accepting new accounts, as well as dealing with changes in accounts impacted by disclaimers, and explains the rules needed to apply the Uniform Principal and Income Act when allocating receipts and payments. After successfully completing this course, students will be able to: Read and interpret documents before establishing new accounts or accepting successor trusteeships Identify issues that arise from disclaimers and the effects on trusts and beneficiaries Correctly apply the rules contained in the 1962 and 1997 Uniform Principal and Income Acts to protect the interests of present and future beneficiaries Explain the interaction between the Uniform Prudent Investors Act and the Uniform Principal and Income Act Recommended Instructional Hours: 4 Retirement Planning 8407 Retirement Planning focuses on the types of retirement plans available, factors that impact various plans, and the importance of integrating retirement benefits with financial and estate planning. Activities offer an opportunity to apply guidelines that address the unique implications of retirement assets. After successfully completing this course, students will be able to: Identify the differences between defined benefit plans and defined contribution plans Describe the characteristics of common qualified, nonqualified, and individual retirement plans Describe the use of trusts to fund nonqualified plan benefit obligations Identify the different forms of distribution required for different types of qualified retirement plans Explain the tax implications of retirement plans Recommended Instructional Hours: 4 Recommended AIB Credit: 0.25 Building Trust Expertise Level 3 builds on the knowledge learned in BTE Levels 1 and 2. The courses are designed for trust personnel who are responsible for the delivery of more complex trust products and services and who are assigned the responsibility of growing the trust department s profitability by establishing new and stronger client relationships. Audience: Trust Officers who have completed Building Trust Expertise Levels 1 and 2, and have two or more years experience working with trust clients managing more complex trusts including tax law and investments. 19

17 (BUILDING TRUST EXPERTISE Level 3 Continued) Estate Planning for the Business Owner 8412 This course examines the issues associated with the transfer of various types of business entities, including valuation and tax considerations Participants undertaking this course should have a firm understanding of the transfer tax system and basic estate planning, including planning for lifetime gifts and estate planning for the marital deduction. After successfully completing this course, students will be able to: Identify the challenges in estate planning for owners of closely held businesses Distinguish the various forms of business entity Identify methods used in valuing closely held businesses, determining discounts, and structuring restrictive agreements Describe the planning techniques available for the effective transfer of privately owned businesses from one generation to another Recommended Instructional Hours: 9 Recommended AIB Credit: 0.50 Estate Planning for Charitable Giving 8411 This course provides participants with the knowledge needed to advise clients in the area of charitable giving and how it is used to provide additional liquidity for the estate and savings on potential estate taxes. After successfully completing this course, students will be able to: Identify the advantages, features, and benefits of charitable trusts. Distinguish between public charities and private foundations Explain the tax rules affecting charitable contributions Advise clients when charitable gifts are appropriate and how such gifts should be made, in light of tax and non-tax considerations Counsel clients regarding charitable planning opportunities Recommended Instructional Hours: 9 Recommended AIB Credit: 0.25 Estate Planning Final Case Study 8413 Estate Planning Final Case Study provides an opportunity to apply concepts learned in earlier estate planning courses to real-world client situations and is appropriate for Trust Officers who have completed the five Estate Planning courses in Levels 2 and 3. After successfully completing this course, students will be able to: Identify planning opportunities that meet clients' needs Determine the tax effect of a client's estate plan and possible transactions Design strategies to minimize a client's estate taxes Craft solutions to client needs that will bring new business opportunities Recommended Instructional Hours: 2 20

18 (BUILDING TRUST EXPERTISE Level 3 Continued) Estate Planning for Lifetime Gifts 8410 This course introduces participants to the concepts of lifetime gifts. It discusses the appropriateness of lifetime gifts, use of the annual exclusion, and various techniques for transferring assets. After successfully completing this course, students will be able to: Assist clients with determining whether they should incorporate a plan of lifetime gifts within their estate plan Advise clients on how to make effective use of the annual exclusion and techniques for transferring assets to minors List the requirements for a Crummey trust and when they may be appropriate for client situations List the features and limitations of GRITS, GRATS, and GRUTS, and suggest strategies for using them when appropriate Apply the principles learned in Gifts, Generation Skipping Transfer Tax in Lifetime Gifts, Gifts of Insurance, and GRITS, GRATS, and GRUTS to determine when and when not to make a lifetime gift Recommended Instructional Hours: 3 Recommended AIB Credit: 0.25 Financial Planning Skills 8414 This course describes the financial planning process as it is used to enhance relationships with trust clients. It provides a big picture overview of financial planning, things to consider in any financial planning discussion, common forms used for financial planning, and how various measurements of value are used in financial planning. After successfully completing this course, students will be able to: Understand the scope of financial planning Explain how Client Profiles, Assets and Liabilities Statements, and Cash Flow Statements are used to identify client needs Identify how different measurements of value are used in financial planning Recommended Instructional Hours: 6.5 Recommended AIB Credit: 0.25 Generation Skipping Transfer Tax 8415 This course provides participants with information needed to develop a thorough understanding of the GST tax and to better respond to common tax-related questions from clients. After successfully completing this course, students will be able to: Define key terminology, including transferor, skip person, and non-skip person Identify the three types of Generation-Skipping Transfers Describe the available GST tax exclusions and the GST tax exemption Calculate GST tax due Recommended Instructional Hours: 8.5 Recommended AIB Credit:

19 (BUILDING TRUST EXPERTISE Level 3 Continued) Investments II 8416 This course builds on two previous Investment courses in the BTE curriculum and focuses on the concepts used in valuing investments, the characteristics of different types of securities markets, and factors to consider in mutual fund selection. After successfully completing this course, students will be able to: Describe the different mutual fund expenses Discuss retail and institutional funds Discuss characteristics of different money market funds Describe an efficient market Describe how the primary market works Describe the function of the bond markets Explain how rate of return is calculated Describe the difference between simple and compound growth Discuss common stock valuation Discuss discount rate Recommended Instructional Hours: 9 Recommended AIB Credit: 0.25 Life Insurance and Annuities 8417 Successfully completing this course enhances the Trust Officer's value to clients as a credible source of insurance information. Participants will learn about life insurance and annuity products, review related policy issues and fiduciary responsibilities, and explore the uses of these products in serving clients' financial- and estate-planning needs. After completing this course, students will be able to: Describe the features and characteristics of hybrid life insurance policies that serve common trust client needs Describe special investment features of annuity types Manage life insurance and annuity contracts within a trust according to bank policy and fiduciary responsibility Identify policy and contract issues that affect clients' estate- and financial-planning objectives Identify additional uses for life insurance and annuity contracts Recommended Instructional Hours: 9 Recommended AIB Credit:

20 Business Etiquette 2506 AUDIENCE: Personnel in the branch and administrative offices. This AIB course introduces the four guiding principles of business etiquette This course explores how to make introductions and others appropriately. This course describes the importance of following professional dress codes It explains how workplace behavior can affect others and how the rules of business etiquette apply to work situations out of the office. Define the four guiding principles of business etiquette Introduce yourself or others appropriately to reflect professional hierarchy Describe professional dress code and the effect of not following the code Explain how workplace behavior can affect others Explain how the rules of business etiquette apply to work situations out of the office TEXT: Live: Business Etiquette, 2006/Rev. 2011, ABA; elearning: All reading materials provided online Recommended Instructional Hours: 4 Live, 2 elearning Recommended AIB Credits: 0.25 Delivery Methods Available: Live, elearning Call Center Representative Certificate Curriculum The curriculum for the AIB Call Center Representative Certificate addresses the knowledge and skills necessary to become a superior Call Center Representative. To be successful, Call Center Representatives must have the appropriate level of understanding of retail products, in addition to understanding bank policies and procedures. Call Center Representatives must communicate well and apply sales skills effectively to cross-sell deposit and credit products and services, as well as open accounts for retail customers. Telephone skills, including telephone etiquette, are critical to the position. In addition to a fundamental understanding of banking and banking regulations affecting the position, the required courses emphasize telephone skills, product knowledge, sales and customer service. All individual courses listed below must be successfully completed in order to earn the AIB Call Center Representative Certificate OR it can also be taken entirely online as a self-paced (elearning) certificate curriculum: Banking Today Cross-Selling Deposit Products Dealing Effectively with Co-Workers Effective Client Referrals Ethical Issues for Bankers Introduction to Relationship Selling Regulatory Compliance for Call Center Representatives Revitalizing Customer Service Tele-Consulting Telephone Etiquette Understanding Bank Products Recommended AIB Credits: 4.25 elearning Curriculum Course 23

21 Calling on Small Business Customers 4288 AUDIENCE: Personnel who are responsible for face-to-face small business customer calls. This course provides instructions on how to plan effective calls with small business clients. This course teaches the steps in the Call Planning Model and for practice, apply them to calls involving fictitious and actual clients. This course also offers the opportunity to practice planning calls with a high degree of skill and confidence. Explain the importance of planning calls and setting call priorities Identify call situations and associate them with the four call types Summarize and apply the steps in the Call Planning Model Recommended Instructional Hours: 1.50 Coaching for Success 6876 AUDIENCE: Bank personnel responsible for coaching others with or without a reporting relationship. This could include managers, supervisors, team leaders and mentors. This AIB course provides managers, supervisors, team leads and mentors with the knowledge and skills necessary to assess, plan, and carry out a performance coaching dialogue with an employee or person being mentored. Additionally, this course provides techniques for ongoing performance feedback and skills for recognizing a coaching opportunity. It will encourage students to become involved, on an ongoing basis, with the performance growth of other employees to develop and enhance their skills. A simulated coaching dialogue enables practice in applying these skills in a typical coaching situation. Differentiate coaching, by goals and methodology, from corrective feedback Recognize a coaching opportunity Describe resources and processes that your employer provides in support of coaching Prepare a plan for a coaching session Demonstrate listening skills appropriate to a coaching dialogue Perform a coaching dialogue TEXT: Live: Coaching for Success, 2006/Rev. 2011, ABA; elearning: All reading materials provided online Recommended Instructional Hours: 3-4 Live, 2 elearning Recommended AIB Credits: 0.25 Delivery Methods Available: Live, elearning 24