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OCC Bulletin 2021-26
May 27, 2021
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Chief Executive Officers of All National Banks and Federal Savings Associations; Department and Division Heads; All Examining Personnel; and Other Interested Parties
The Office of the Comptroller of the Currency (OCC) published a final rule in the Federal Register on May 26, 2021, that adopts with one minor change the interim final rule “Collective Investment Funds: Prior Notice Period for Withdrawals,” published on August 13, 2020. The final rule is effective on May 26, 2021.
The interim final rule is applicable to any community bank that administers a covered collective investment fund (CIF).
Pursuant to 12 CFR 9.18(b)(5)(iii), as revised by the interim final rule, a national bank or federal savings association (collectively, a bank) that administers a CIF invested primarily in real estate or other assets that are not readily marketable (a covered CIF) may require a prior notice period, not to exceed one year, to withdraw an account from a CIF. A bank that requires a prior notice period for withdrawals must withdraw an account from the CIF within the prior notice period or, if permissible under the CIF’s written plan, within one year after the date on which notice was required (the standard withdrawal period). As an exception to the above, a bank may request the OCC’s approval for extensions to the standard withdrawal period if certain criteria are met.
This final rule adopts as final the framework described above and revises one of the criteria for OCC approval of an extension. To be eligible for an extension, the interim final rule required a bank’s board of directors (or a committee authorized by the board) to commit that the bank would act upon any withdrawal request as soon as practicable. The final rule revises this criterion so that the bank must “represent” rather than “commit” that it will act upon the withdrawal request as soon as practicable.
Please contact Beth Kirby, Assistant Director, Asa Chamberlayne, Counsel, or Daniel Perez, Counsel, Chief Counsel’s Office, (202) 649-5490; or David Stankiewicz, Technical Expert for Asset Management Policy, Market Risk Policy Division, 202-649-6360.
Jonathan V. Gould
Senior Deputy Comptroller and Chief Counsel