Collective Investment Funds

Written Plan – 9.18(b)(1)

The board of directors of a national bank, or a committee authorized by the board, must approve through resolution a written plan for each CIF operated by the bank. Though the regulation does not dictate a plan’s specific terms, a plan must contain appropriate provisions regarding the manner in which a bank will operate the fund. At a minimum, a plan must include provisions relating to:

• Investment powers and policies with respect to the fund;

• Allocation of income, profits, and losses;

• Fees and expenses that will be charged to the fund and to participating accounts;

• Terms and conditions governing the admission and withdrawal of participating accounts;

• Audits of participating accounts;

• Basis and method of valuing assets in the fund;

• Expected frequency for income distribution to participating accounts;

• Minimum frequency for valuation of fund assets;

• How much time the bank has, following a valuation date, to do the valuation;

• Bases upon which the bank may terminate the fund; and

• Any other matters necessary to define clearly the rights of participating accounts.

A bank must make a copy of the plan available for public inspection at its main office and must provide a copy of the plan to anyone who requests it. Banks are no longer required to submit copies of CIF plans to the OCC.

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