Comptroller's Licensing Manual

Fiduciary Business Plan—Instructions
Submit a copy of the projected business plan or feasibility study prepared to support
the establishment of the proposed fiduciary operation. The plan, at a minimum,
should address sufficiently the following considerations:
1.

Identify the proposed primary market area:
•

Demonstrate the need for fiduciary services in the proposed market
area and the degree to which business may be drawn from outside
this area.

•

Specify the types of fiduciary services to be offered and the fees to be
charged for each service.

•

Demonstrate realistic assessments of risk in light of economic and
competitive conditions in the market area.

2.

Identify the institutions offering fiduciary services in the same market area
and the competitive role those institutions play, including their relative size
and market share of trust business. The applicant should describe in what
way it intends to draw from those institutions or otherwise establish its
fiduciary customer base.

3.

Estimate the period of time that will be required to place the operation of the
proposed trust department on a profitable basis. Discuss any additional facts
that might influence profitability.

4.

Discuss any plans to acquire existing business.

5.

Additional information may be submitted as appropriate.

6.

Earnings prospects. Provide an estimate of income and expenses for each
of the first two years of operation, including an estimate of the number of
fiduciary accounts and the volume of business for each year. The following
format may be used:

Fiduciary Business Plan

Number of Accounts
Value of Trust Assets
Number of Officers
Number of Other Employees

First
Year

Second
Year

_____

_____
_____

_____
_____

_____
_____
_____

═══════════════════════════
Gross Fees, Commissions,
and Other Fiduciary Income
Trust and Agency Accounts
All Other Fiduciary Income

_____
_____
_____

_____
_____
_____

Total Fiduciary Income

_____

_____

_____
_____
_____

_____
_____
_____

Operating Expenses
Salaries and Employee Benefits
Legal Fees
Consulting Fees
New Business
Settlements, Surcharges,
and Other Losses (Less Recoveries)
Overhead and Other Direct Expense

_____
_____

_____
_____

Total Expense

_____

_____

Net Trust Income (Loss)

_____

_____

_____

_____