Question

The revisions to the UITRS include which of the following: (select all that apply)

a. Realign the UITRS rating definitions to bring them in line with the UFIRS.
b. Reduce the component rating categories from six to five, combining the Account Administration and Conflicts of Interest components into a new Compliance component.
c. Require Earnings to be rate only in institutions with more than $100 million in total trust assets.
d. Explicitly refer to the quality of risk management processes in the management component, and the identification of risk elements within the composite and component rating definitions.

Answer 1

Revisions to the UITRS include aligning it with the UFIRS, reducing component categories, specifying earnings rating for larger trusts, and emphasizing risk management quality. Option B is correct.

Step-by-step explanation:

The revisions to the Uniform Interagency Trust Rating System (UITRS) include various updates to improve its effectiveness. These changes are aimed at enhancing the overall rating system used for fiduciary activities of financial institutions. Specifically:

• Aligning the UITRS rating definitions with the Uniform Financial Institutions Rating System (UFIRS) is one of the proposed revisions.
• The suggestion to reduce the component rating categories from six to five by combining the Account Administration and Conflicts of Interest components into a new Compliance component.
• There is a consideration to require the Earnings component to be rated only in institutions with more than $100 million in total trust assets.
• Another revision explicitly refers to the quality of risk management processes within the management component and incorporates the identification of risk elements in both composite and component rating definitions.