A trust institution's policies should include all of the following except:

A trust institution's policies are essential for effective governance, management, and risk assessment within the trust operations. Each of the listed components plays a vital role in guiding the institution through different areas of function and compliance.

Having a policy for exception reporting and approval guidelines is important because it ensures that any deviations from established policies are documented and approved, allowing for accountability and oversight. This helps maintain the integrity and trust in the institution's operations.

Guidelines for account administration are crucial as they outline the processes for managing client accounts effectively. This includes procedures pertaining to account opening, maintenance, and closure, ensuring that all accounts are handled consistently and in accordance with regulatory requirements.

An Investment Policy is also a critical part of a trust institution's framework, as it defines the principles governing the institution's investment strategies and objectives. It ensures that investments are made prudently and in alignment with the trust’s goals, ultimately safeguarding the assets and interests of the beneficiaries.

While an Interest Rate Risk Policy is important for financial institutions in general, especially those involved in lending and borrowing activities, it might not be specifically required or critical for a trust institution when compared to the other policies mentioned. Trust institutions typically do not have the same level of exposure to interest rate risks that traditional banks or lenders