Al W. King III, co-CEO of the South Dakota Trust Company, LLC, which runs many of the private trust companies in the state for wealthy families, said the legislation is a positive step for the state.
While regulators discussed raising the capital requirement across the board for commercial trust companies to $500,000, it decided in the end not to, a choice that keeps South Dakota attractive, King said. And making a formal distinction between public and private companies will benefit private trust companies by helping route them into a lighter regulatory track the state has for them.
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