The OCC has finalized a rule that would make several regulatory adjustments as part of its efforts under the Economic Growth and Regulatory Paperwork Reduction Act to reduce unnecessarily burdensome or outdated banking rules.
Most notably, the agency finalized – with a point of clarification – ABA's recommendation to allow national banks to offer investment advice for a fee without having custody of the client’s assets either directly or through a sub-custodian, as currently required in 12 CFR 9.13. ABA’s request to modernize the rules on custody was made to address the growing trend that bank fiduciary clients, while wanting the bank’s investment management expertise, sometimes seek to maintain custody with another institution.
Other specific proposed changes include changes to licensing rules, bank director oath requirements, fidelity bond activities, reporting requirements, electronic activities and recordkeeping.
Read the final rule.