OCC Reg 9

9.1

Authority, purpose, and scope
Authority- The OCC issues this part pursuant to its authority under 12 USC 24
Purpose- To set forth the standards that apply to the fiduciary activities of national banks
Scope- All national banks that act in a fiduciary capa

9.2

Definitions
Affiliate- The bank owns at least 50%
Applicable law- All state and federal laws
Custodian under a uniform gifts to minors act- Applies to 18 and under
Uniform transfer to minors act- Applies to 21 and under
Fiduciary powers- 12 USC 92a
Trust

9.3

Approval requirements
A national bank cannot exercise fiduciary powers unless it is approved by the OCC under 12 CFR 5.26
Once you get approval, you don't need new approval to exercise activities from 9.7 (d) or ancillary activities in a new state. You fo

9.4

Administration of fiduciary powers
Responsibilities of the BOD- Fiduciary activities must be managed by or under the discretion of the board. BOD can assign fid powers to any director, officer, employee, or committee thereof
Use of other personnel- A bank

9.5

Policies and procedures
banks exercising fid powers shall adopt and follow policies and procedures to maintain its fiduciary activities in compliance with applicable law.
P&P should address:
a-Brokerage placement practices
b-Ensuring no insider trading
c-

9.6

Review of fiduciary accounts
Pre-acceptance review- before accepting, review to determine if it can be properly administer
Initial post-acceptance review- (where bank has investment discretion)prompt review of all assets to evaluate if they are appropriat

min requirements for AARs

*for accts with investment discretion
1. ensure acct investment objectives are current and appropriate and investments are consistent with those objectives. Need investment policy statement.
2. ensure investment review provides for an annual assessment of

requirement for unique assets

1. appraisal should be appropriate with the accts objectives and should be retained
2. include careful review of asset retention letters. they are viewed as instructions for banks. should update annual
3. provide valuations appropriate for type of asset a

process of acct reviews

3 ways they are reviewed:
1. totally automated
2. totally manual
3. combo of two.
factors to consider if using auto:
-may not provide independent/ human prospective
-may not address if acct objectives need to change or have been changed
-dont get bene nee

9.7

Multi-state fiduciary operations
A- acting in a fid capacity in more than one state: can act in a fid capacity in any state,
1. Any of the 8 listed in 12 USC 92a
2. Any other capacity the state permits
B- Serving customers in other states: can market its

9.8

Recordkeeping
a. Documentation of accounts- document the open and close of each account & maintain adequate records
b. Retention of records- Keep them for 3 years from the later of the termination of the acct or termination f any litigation relating to th

9.9

Audit of fiduciary activities
a. Annual audit- at least once during the year. audit for significant fid activities, under the direction of its fid audit committee unless the bank adopts a continuous system. Results should be noted in the minutes of the bo

9.10

Fiduciary funds awaiting investment or distribution
a. in general: May not allow funds to remain uninvested or undistributed any longer than a reasonable time for proper management.
b. Self-deposits-
1. in general: Can deposit funds of a fid account into

9.11

Investment of fiduciary funds
A national bank shall invest funds of a fid account in a manner consistent with applicable law. Prudent investor/Prudent man.

9.12

Self-dealing and conflicts of interest
a. investment of fid accounts:
1. in general: may not invest funds of a fid account where bank has investment discretion with whom there exists an interest.
2. additional securities investments: If retention or oblig

9.13

Custody of fiduciary assets
a. Control of fiduciary assets: assets of fid accounts must have 2 officers or employees designated for that purpose by BOD
b. Separation of fiduciary assets: Keep assets separate from bank assets. Keep each account separate or

9.14

Deposit of securities with state authorities
Follow the state

9.15

Fiduciary compensation
1. compensation of bank: Reasonable fee if not set or governed by applicable law
2. comp of co fiduciary officers and employees: Employees can't be collect fees as co-trustee without approval of the board

9.16

Receivership or voluntary liquidation of bank
If the OCC appoints a receiver for an uninsured NB or if a NB places itself in a voluntary liquidation, the receiver or liquidating agent shall promptly close or transfer to a substitute fiduciary all accounts

9.17

Surrender or revocation of fiduciary powers
a. Surrender: a NB seeking to surrender its fid powers shall file with the OCC a certified copy of the resolution of its BOD evidencing that intent.
b. Revocation: They can be revoked if they are unlawful, unsou

9.18

Collective investment funds
A: in general: NB may invest assets that it holds as fid in the following CIF:
1. a fund maintained by the bank in its capacity as trustee, executor, administrator, guardian, custodian under uniform gift to minors act.
*agency

9.18 Requirements

1. Written plan*
2. Fund management - bank administering a CIF must have exclusive mgmt
3. Proportionate interests- each participating acct in a CIF must have a proportionate interest in all fund assets
4. Valuation-
i. In general: At least once every 3 m

9.18 Written plan list

1. Investment powers and policies in respect to the fund
2. Allocation of income, profits, and losses
3. Fees and expenses that will be charged to the fund and to participating accounts
4. Terms and conditions governing the admission and withdrawal of par

9.20

Transfer agents
SEC, Securities exchange act of 1934
someone buys stock. transfer stock from buyer to seller

9.100

Acting as indenture trustee and creditor
You can act us both until 90 days after default

9.101

Providing investment advice for a fee
Fiduciary capacity include investment adviser if the bank receives a fee for investment advice.