BFA gained approval to operate a trust department that would serve as a nonbank passive trustee for IRAs. To operate trust department, BFA had to comply with certain regulatory requirements, such as maintaining an appropriate minimum net worth. In assition to the minmum net worth requirement, treasury requlations also required BFA to conduct its affairs as a fiduciary; that is, it could not manage or direct the investment of IRA funds. In addition, BFA had to subject itself to an audit that would detect any failures to meet these regulatory requirements. In cases where the minimum net worth was not achieved, treasury regulations prohibited a trustee from accepting new IRA accounts and required the relinquishment of existing accounts