Banking
Trust Companies
Documents referenced below are available in Adobe PDF format unless otherwise noted.
Listing of Trust Companies Licensed to Do Business in South Dakota
Fiduciary and Related Services Report Instructions
Trust Company Information Packet
Trust Company Applications and Notices
Miscellaneous Trust Company Forms
Change in Management, Officers and Key Employees
Summary of Key Statutory Requirements
Legislative Updates and Memorandums
Governor's Task Force on Trust Administration Review and Reform
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.
Processing of Applications
If an application is complete and contains no material errors or omissions, the South Dakota Division of Banking (Division) will submit notice for publication pursuant to South Dakota Codified Law (SDCL) 51A-6A-4 and SDCL 51A-2-16.
Trust Company Applications and Notices
Please download these documents and forms by right-clicking the link and selecting “Save link as.” Open in Adobe Acrobat/Reader to view and complete.
Charter Application and Instructions
Trust Company Surrender Notice
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 no later than January 30.
Please download these documents and forms by right-clicking the link and selecting “Save link as.” Open in Adobe Acrobat/Reader to view and complete.
List of Officers and Employees
See ARSD 20:07:22:01 - Fee Calculation.
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Miscellaneous Trust Company Forms
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.
Required Background Information
Each applicant must submit the following in one comprehensive package:
- Biographical and Financial Report. A recent signed and dated financial statement (balance sheet) must be attached to the Biographical and Financial Report. An electronic fill-in version of the Biographical and Financial Report is available below.
Please note that the Biographical and Financial Report must be completed electronically and on the most recent fillable form, as provided in the link below. Any handwritten and/or forms completed on previous/older versions will be returned to the applicant, resulting in a delay in the applicant’s processing.
- Recent Credit Report. Proof of a credit score of 700 or higher will suffice. Applicants with credit scores less than 700 must submit the entire credit report. Any report from a consumer reporting agency as described by 12 U.S.C 1681a(p) qualifies.
- Litigation Report. Generally, the litigation report is a notarized statement attesting to any ongoing or pending litigation, or lack thereof.
- Public Trust Companies Only - Division-specific Federal Bureau of Investigation Fingerprint Card provided by the Division.
- Public Trust Companies Only - Division-specific South Dakota Division of Criminal Investigation (SD DCI) Fingerprint Card provided by the Division and a check for $43.25 made payable to the “SD DCI.” Please ensure both sides of the SD DCI Card are completed.
- Private Trust Companies Only - Name-based background investigation performed by an independent third party. Examples include Thomson Reuters, World-Check, Lexis Nexis Instant ID, etc.
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. Please download these documents and forms by right-clicking the link and selecting “Save link as.” Open in Adobe Acrobat/Reader to view and complete.
Biographical and Financial Report
Trust Company Requirements
Summary of Key Statutory Requirements
Trust companies are encouraged to thoroughly review SDCL Chapter 51A-6A and Title 55, which pertain to the creation and administration of a South Dakota trust company and address trust law in South Dakota. Sections of note include:
- The capitalization of a trust company shall not be less than $200,000 pursuant to SDCL 51A-6A-19.
- A fidelity bond and director's and officer's liability insurance policy coverage of at least $1,000,000 each are required pursuant to SDCL 51A-6A-19.
- A deposit pledged to the Division shall not be less than $100,000 pursuant to SDCL 51A-6A-19.
- A South Dakota-chartered trust company is subject to an annual supervisory fee computed at the rate of seven cents per $10,000 of total trust assets under management, administration, or custody as reported as of the end of December. The minimum annual fee is $3,750 and the maximum annual fee is $20,000 for private trust companies, while the minimum annual fee is $4,500 and the maximum annual fee is $30,000 for public trust companies. In addition, trust companies shall pay the actual cost for each on-site examination and the additional supervision costs for any trust company operating under an enforcement action. These fees are pursuant to ARSD 20:07:22:01.
- SDCL 51A-06A-11.1, SDCL 51A-6A-11.2, and SDCL 51A-6A-11.3 establishes jurisdiction criteria needed to establish South Dakota situs.
Private Trust Company Mandates
Trust Company Examination Procedures
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.
Supervisory Guidance
The following guidance is generally derived from best business practices utilized by South Dakota-regulated financial institutions to mitigate business and fiduciary risks. The examination process is structured to assess each institution’s risk management processes and to assist management in addressing any areas of identified weaknesses. Examination observations regularly reference supervisory guidance to provide management with examples of sound risk management practices and to assist with corresponding risk mitigation. While examinations do not cite violations of supervisory guidance, deviations from the guidance could heighten the institution’s overall risk profile which may negatively impact regulatory assessments. Please note that the supervisory guidance is general in nature and designed to assist management with developing a comprehensive risk management program. Therefore, the guidance should be modified as needed to correspond with each institution’s unique business model.
Account-Level Administrative Review Guidance
Account-Level Investment Review Guidance
Customer Identification Guidance
Fiduciary and Related Services Report Instructions
Foreign Trust Acceptance and Oversight Guidance
Foreign Trust Taxation and Reporting Guidance
Real Estate Oversight Guidance
Statement of Principles of Trust Management
Statement of Principles of Trust Management - Custodial
Written Policies and Procedures Guidance
Legislative Updates and Memorandums
10-001 Situs Clarification (November 20, 2001)
10-002 Regulation R (July 9, 2010)
10-003 Bank Secrecy Act (June 6, 2011)
10-004 Interstate Trust Guidance (April 3, 2015)
10-005 Interstate Trust Guidance Addendum (October 13, 2015)
10-006 Office Space Reminder (June 30, 2017)
10-007 Pandemic Planning (March 23, 2020)
10-008 FinCEN Final Rule dated September 15, 2020 (January 5, 2021)
20-002 New Trust Legislation (June 6, 2008)
20-004 New Trust Legislation (April 26, 2007)
20-005 New Trust Legislation (June 12, 2009)
20-007 New Trust Legislation (June 8, 2010)
20-008 New Trust Legislation (June 23, 2011)
20-009 New Trust Legislation (June 8, 2012)
20-010 New Trust Legislation (October 22, 2012)
20-011 New Trust Legislation (June 10, 2013)
20-012 New Trust Legislation (June 12, 2014)
20-013 Situs Reminder (June 12, 2014)
20-014 New Trust Legislation (June 19, 2015)
20-015 New Trust Legislation (July 8, 2016)
20-021 New Trust Legislation (June 30, 2017)
20-023 New Trust Legislation (June 15, 2018)
20-024 New Trust Legislation (June 19, 2019)
20-027 New Trust Legislation (June 3, 2020)
20-028 New Trust Legislation (June 10, 2021)
10-009 Special Purpose Entity Oversight Guidance (July 8, 2022)
10-010 FinCEN Consent Order (May 5, 2023)
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.