Collective Investment Funds

Good Faith Mistakes – 9.18(b)(12)

The OCC recognizes that a bank may unknowingly run afoul of one of the CIF regulations. To motivate banks that administer CIFs to correct their good faith mistakes as promptly as possible, the regulation provides that the OCC will not determine that a bank has violated the CIF regulations when a bank makes a good faith mistake while exercising due care in connection with administering a CIF. This limited exemption applies so long as the bank, promptly after the discovery of the mistake, takes whatever action is practicable under the circumstances to remedy the mistake.

Previous: Prohibition Against Certificates – 9.18(b)(11) Next: Appendix C: Collective Investment Funds and the ‘40 Act