A recent audit revealed that the bank's personal trust division was failing to determine whether securities being accepted from new trust customers have been reported as lost or stolen. To address the root cause of this problem, what should the compliance officer do FIRST?

Question

Quizplus · Accepted Answer

The first step in addressing the root cause of this problem is to review the policies and procedures for accepting securities in new personal trust relationships to ensure securities verification. This will ensure that the trust division is following the correct procedure in verifying securities and prevent the issue from occurring in the future. Inquiring with the SIC or contacting the bank's primary regulator can be done afterward to further address the issue. Retraining may also be necessary, but reviewing policies and procedures should be the first step.

A Recent Audit Revealed That the Bank's Personal Trust Division