The Office of the Comptroller of the Currency ("OCC") issued a final rule to remove "outdated or otherwise unnecessary" rules with the effect of reducing regulatory burden on national banks and federal savings associations. The final amendments – effective on January 1, 2017 – are part of the OCC's decennial review of its rules as required by the Economic Growth and Regulatory Paperwork Reduction Act of 1996.
The OCC specifically recommended the removal of the following rules:
- notice and approval requirements for certain changes in permanent capital involving national banks;
- certain financial disclosure requirements for national banks;
- certain unnecessary regulatory reporting, accounting, and management policy requirements for federal savings associations; and
- unnecessary requirements in the electronic activities rule for federal savings associations.
The OCC's final rule also: (i) clarifies national bank director oath requirements; (ii) simplifies certain licensing rules for business combinations involving federal mutual savings associations; (iii) revises certain fiduciary activity requirements for national banks and federal savings associations, including increasing the asset size limit for mini-funds; (iv) integrates and updates OCC rules for national banks and federal savings associations relating to municipal securities dealers, Securities Exchange Act disclosures, securities offering disclosures, and insider and affiliate transactions; (v) updates recordkeeping and confirmation requirements for national banks and federal savings associations' securities transactions; and (vi) permits the electronic submission of filings required under the Securities Act of 1933 and the Securities Exchange Act of 1934.
As part of the decennial review, the OCC also recommended legislative changes, such as a community bank exemption from the Volcker rule and a proposal to provide federal savings associations with greater flexibility to adopt to changing economic and business environments and meet the needs of their communities.
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