Final answer:
The statement setting a requirement for the trust committee to meet monthly is not a part of the Principles of Trust Management. Instead, the principles emphasize oversight, proper record-keeping, and transparency. The correct answer is d. The trust committee should meet at least monthly, or more frequently if considered necessary and prudent to fulfill its supervisory responsibilities.
Step-by-step explanation:
The tenet that is not a part of the Statement of Principles of Trust Management is that the trust committee should meet at least monthly, or more frequently if considered necessary and prudent to fulfill its supervisory responsibilities.
This option pertains to a specified frequency of meetings which is not a standard requirement outlined in the principles of trust management.
Instead, trust management principles focus on oversight, record-keeping, and transparency through actions such as making periodic reports (typically to a governing board like the Board of Directors), maintaining detailed minutes and records, and ensuring separate bookkeeping for trust activities.
In the context of corporate governance, this includes the Board of Directors, which is the first line of corporate governance, with functions including oversight of top executives.
Other governance entities may include auditing firms and outside investors, such as those that manage large mutual funds, who expect accurate financial information about a firm's operations.
The failure to properly govern, as seen in the case of Lehman Brothers, can lead to misinformation and financial troubles.
The correct answer is d. The trust committee should meet at least monthly, or more frequently if considered necessary and prudent to fulfill its supervisory responsibilities.