Fiduciary Activities

Summary, Commentary and Guidance

A national bank that wishes to commence fiduciary powers or to exercise fiduciary powers in another state must obtain approval from the OCC

See the "Fiduciary Powers" booklet of the Comptroller's Licensing Manual for a detailed discussion of the agency's policies and procedures

OCC Regulations National Banks

National banks with fiduciary powers (which may be granted at the time of chartering or subsequently upon application to the OCC) are:

subject to federal rules that define fiduciary standards and
authorized to operate in the same capacities as fiduciaries are permitted to operate in the states where the bank conducts its trust activities

12 CFR 5.26(e) covers the application filing procedures to obtain approval for the exercise of fiduciary powers by national banks

National banks may also operate as limited purpose trust banks and need not engage in all banking functions

12 CFR Part 9 - Fiduciary Activities of National Banks

9.1 Authority, purpose, and scope
9.2 Definitions
9.3 Approval requirements
9.4 Administration of fiduciary powers
9.5 Policies and procedures
9.6 Review of fiduciary accounts
9.7 Multi-state fiduciary operations
9.8 Recordkeeping
9.9 Audit of fiduciary activities
9.10 Fiduciary funds awaiting investment / distribution
9.11 Investment of fiduciary funds
9.12 Self-dealing and conflicts of interest
9.13 Custody of fiduciary assets
9.14 Deposit of securities with state authorities
9.15 Fiduciary compensation
9.16 Receivership or voluntary liquidation of bank
9.17 Surrender or revocation of fiduciary powers
9.18 Collective investment funds
9.20 Transfer agents
9.100 Acting as indenture trustee and creditor
9.101 Providing investment advice for a fee

Specific Services

Collective Investment Funds
Investment of Employee Benefit Account Assets
Nationwide Trust Services
Real Estate Brokerage and Related Services
(as a fiduciary)
Self-deposit in Short-term Investment Fund
Support Services in General
National banks may act as agent for an individual or corporation without obtaining prior approval to exercise trust powers if the duties are nondiscretionary and purely ministerial in nature
Agent for Deposit Placement
Agent for Purchasing or Selling Government Securities
Agent for Purchasing or Selling Real Estate Limited Partnership Interests
Agent for Service of Process

FDIC Regulations Insured nonmember state banks

Subject to a few exceptions, an insured state nonmember bank must seek the FDIC's prior permission to exercise trust powers. 12 CFR Part 303.242

Permissibility of such activities is also the province of the institution's primary regulator

In general, the FDIC's regulations of insured state banks track those of the OCC. That is, insured state banks may not engage in activities that are not permissible for national banks unless some specific exception applies

OTS Regulations Savings & Thrift Institutions

Part 550 - Fiduciary Powers of Savings Associations

550.10 Governing regulations
550.20 Fiduciary powers
550.30 Capacities covered
550.40 Investment discretion
550.50 Fiduciary account
550.60 Definitions that apply

Subpart A - Obtaining Fiduciary Powers

550.70 Must I obtain OTS approval?
550.80 How do I obtain OTS approval?
550.90 What information must I include?
550.100 What factors may the OTS consider?
550.110 Who will act on my application?
550.120 What action will the OTS take on my application?
550.125 How do I file the notice under 55070(c)?

Subpart B - Exercising Fiduciary Powers

550.130 How may I conduct multi-state operations?
550.135 How do I determine which State's laws apply?
550.136 To what extent do State laws apply?
550.140 Must I adopt and follow written policies?
550.150 Who is responsible?
550.160 What personnel and facilities may I use?
550.170 Other departments or affiliates use
550.180 May I perform fiduciary services?
550.190 Bonding of fiduciary officers and employees
550.200 Must I review a prospective account?
550.210 Must I conduct additional review?
550.220 Are any other account reviews required?
550.230 Custodial control
550.240 Off-premise holding
550.250 Must I keep fiduciary assets separate?
550.260 How may I invest funds of a fiduciary account?
550.290 Fiduciary funds awaiting investment
550.300 Where may I deposit fiduciary funds?
550.310 What if the FDIC does not insure the deposits?
550.320 Uninsured acceptable collateral
550.330 Investments in which I may not invest funds
550.340 Additional purchase rights
550.350 Lending, selling, or transferring assets
550.360 Making a loan to a fiduciary account
550.370 Selling assets between accounts
550.380 Earning compensation in a fiduciary capacity
550.390 Retaining compensation
550.400 Accepting a gift or bequest
550.410 Keeping records
550.420 How long must I keep these records?
550.430 Keeping fiduciary records separate
550.440 When do I have to audit my activities?
550.450 Standards that govern the conduct of the audit
550.460 Who may conduct an audit?
550.470 Who directs the conduct of the audit?
550.480 How do I report the results of the audit?

Subpart C - Depositing Securities With State Authorities

550.490 Depositing securities
550.500 In more than one state
550.510 If State authorities refuse my deposit

Subpart D - Terminating Fiduciary Activities

550.520 Receivership or voluntary liquidation
550.530 Surrender of fiduciary powers
550.540 Termination by the OTS
550.550 Recovering my deposit from State authorities
550.560 Revocation by the OTS
550.570 What procedures govern the revocation?

Subpart E - Activities Exempt From This Part

550.580 Without obtaining approval
550.590 Standards to observe
550.600 Investing funds
550.610 Disclosures
550.620 Compensation

Specific Services

NCUA Regulations Credit Union

12 CFR Part 721, Section 721.3(l) - Trustee or custodial services

12 CFR Part 741, Section 741.221 - Suretyship and guaranty requirements

12 CFR - Part 724 Trustees and Custodians of Certain Tax-Advantaged Savings Plans

724.1 Federal credit unions
724.2 Self-directed plans.
724.3 Appointment of successor trustee or custodian

// This display the document title in the html page document.write(document.title);