Seal of the Board of Governors of the Federal Reserve System BOARD OF GOVERNORS

WASHINGTON, D. C.  20551
SR 00-18 (TRN)
December 19, 2000


SUBJECT:   Revisions to the Federal Reserve's Fiduciary Education Program for Banking Supervision Staff

                     The Federal Reserve is adopting a new fiduciary education program for supervision staff.  The program recognizes that, with the integration of specialty examinations into the overall assessment of financial institutions, all examiners need a broad understanding of specialty areas.

                     The new fiduciary education program stresses the importance of maintaining fiduciary and asset management expertise in the System, yet accommodates the diverse needs of the Reserve Banks.  In addition to providing examiners with a broad-based knowledge of fiduciary and asset management activities, the new program promotes opportunities for intermediate and advanced training.  The new program has permitted the elimination of the separate trust specialty curriculum set forth in SR letter 98-2.

                     The various components of the new program are described below.

    Principles of Fiduciary Supervision (PFS). The System will offer a one-week course presenting basic fiduciary and asset management topics.  Three days of the course will be developed and taught by an outside vendor.  The remainder of the course, which centers on risk-focused fiduciary examination principles and the uniform interagency trust rating system, will be designed and delivered by System fiduciary specialists.  The one-week course will be targeted to assistant or commissioned examiners with limited or no experience in fiduciary supervision and will prepare them to participate in fiduciary examinations upon completion of the course.  In addition, after a period of on-the-job training, commissioned examiners who complete the course should be able to lead examinations of non-complex fiduciary operations.  A copy of the proposed PFS course description is attached and a pilot of the course is expected to be offered in April 2001.

    On-Line Catalog for Intermediate and Advanced Opportunities. The nature of fiduciary training needed beyond the new one-week course varies significantly across Reserve Banks due to differences in the size, structure, and complexity of banking organizations among Districts.  The Fiduciary Course Committee (FCC) will work with the newly formed Career and Human Resource Development Group to ensure that intermediate and advanced developmental opportunities for fiduciary and asset management specialists are included in a System on-line catalog.  The on-line catalog will include a menu of courses, outside certifications, and other non-classroom developmental opportunities (e.g., rotational assignments and System work groups).  It is expected that the on-line catalog will assist examiners seeking additional education or certifications in a specific fiduciary and asset management area.

    Advanced Training on Common Emerging Topics and Senior Forums.  It is recognized that examiners would benefit from System-sponsored advanced training and development in fiduciary and asset management activities.  The FCC will periodically survey the Reserve Banks to determine if there are common emerging needs.  In such cases, the FCC will coordinate special courses or forums to address the identified needs.  To do this, the FCC will work with System experts in the particular area, industry officials, or an outside vendor.  This will provide an opportunity for staff to learn about specific fiduciary-related topics, interact with other examiners, and learn from industry officials.

                     With the implementation of the new fiduciary training program, future fiduciary specialists will be commissioned pursuant to one of the three remaining specialty tracks of safety and soundness, consumer affairs, or information technology.  Assistant examiners currently completing the trust specialty track will have the opportunity to complete the current training and examination requirements.  However, going forward newly hired examiners must complete one of the three remaining specialty tracks.

                     Officers in Charge of Supervision are instructed to ensure that supervisory personnel and examiners are fully informed of the new fiduciary education opportunities for banking supervision staff.  Consistent with longstanding practice, this revised program will be available to supervisory personnel from other state and federal agencies.  If you have questions regarding this letter, please contact Sid Sussan, Deputy Associate Director, at (202) 452-2638.

Richard Spillenkothen

Attachment (14 KB PDF)

Cross-Reference:  SR letter 98-2

SR letters | 2000