Marcia Hultman

Cabinet Secretary

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Banking

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 Application Forms

Annual Report Forms

Miscellaneous Trust Company Forms

Change in Management, Officers and Key Employees

Trust Company Requirements and Guidance

Summary of Key Statutory Requirements

Financial Institution Tax

Additional 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.

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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 Application Forms

The documents and forms available below are in Adobe PDF format unless otherwise noted.

Trust Company Application Instructions and Approval Process

Trust Company Charter Application - Choose the Adobe PDF or Microsoft Excel format below. Both options may be completed electronically, then printed and submitted by postal mail; however, the Excel option allows you to save the file electronically for your records.

Trust Company Charter Application in Adobe PDF format

Trust Company Charter Application in Microsoft Word format

Trust Company Application Attachments

Application for Interstate Trust Activities (from the Conference of State Bank Supervisors)

Oath of Directors

Oath of Managers

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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.

List of Owners

List of Officers and Employees

Oath of Directors

Oath of Managers

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

Trust Fee Calculator (in Microsoft Excel format)

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Miscellaneous Trust Company Forms

ACH Authorization Form

Pledge 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

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Trust Company Requirements and Guidance

 

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-6A-11.1 establishes jurisdiction criteria needed to establish South Dakota situs.

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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.

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Additional Guidance

Administrative Review Guidance

Bank Secrecy Act Guidance

Customer Identification Guidance

Due Diligence Review Guidance

Internal Audit Guidance

Interstate Trust Guidance

Investment Policy Components Guidance

Investment Review Guidance

Pooled Investment Guidance

Real Estate Guidance

Regulation R Guidance

Statement of Principles of Trust Management

Trust Company Examination Procedures

Trust Company Mandates

Written Policies and Procedures Guidance

Legislative Updates and Memorandums

10-002 Regulation R (July 9, 2010)

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

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 Update (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)

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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.