Collective Investment Funds

12 CFR 9.18

Part 9 allows national banks to maintain and invest fiduciary assets in a CIF “where consistent with applicable law.” Applicable law is defined in 12 CFR 9.2(b) as:

• The terms of the instrument governing a fiduciary relationship;

• The law of a state or other jurisdiction governing a national bank’s fiduciary relationships;

• Applicable federal law governing those relationships (for example, ERISA, federal tax and securities laws); or

• Any court order pertaining to the relationship.

In many instances, the instrument governing the fiduciary relationship will provide a bank the basis to commingle the account’s assets with others. In the absence of express authority provided by the governing instrument, state law generally authorizes a bank to collectively invest fiduciary assets. Generally, fiduciary assets covered by ERISA also may be collectively invested by banks.

Appendix A, “Types of Collective Investment Funds,” and appendix B, “12 CFR 9.18(b), Administrative Requirements,” provide additional details regarding the different funds a bank may offer and the regulatory requirements the OCC imposes on these funds.

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