OCC Bulletin 2015-2| January 14, 2015
Retail Nondeposit Investment Products: Revised Comptroller's Handbook Booklet and Rescissions
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) issued today the "Retail Nondeposit Investment Products" booklet of the Comptroller's Handbook. This revised booklet replaces a similarly titled booklet issued in February 1994.
This revised booklet provides updated guidance to examiners on national banks' and federal savings associations' (collectively, banks) activities involving the recommendation or sale of nondeposit investment products to retail customers. This booklet includes an overview of bank delivery channels and the regulatory structure and requirements associated with banks offering these products. This booklet explains the risks inherent in offering such products and provides a framework for managing those risks.
Note for Community Banks
The risk management principles and legal requirements discussed in this booklet apply to examinations of all banks that offer retail nondeposit investment products.
Specifically, this booklet
- clarifies guidance applicable to current business practices.
- incorporates significant regulatory changes adopted in the Gramm-Leach-Bliley Act and the Dodd- Frank Wall Street Reform and Consumer Protection Act that affect banks' securities-related activities and the OCC's supervisory authority.
- incorporates interagency statements and guidance on retail sales of nondeposit investment products.
- updates risk management guidance and OCC expectations for effective risk management.
- updates references, including those affecting federal savings associations.
- deletes references to previously rescinded OCC guidance.
The issuance of this booklet rescinds the following guidance:
- OTS Examination Handbook, section 280, "Margin Securities (Regulation U)" and related program and appendixes.
- OTS Examination Handbook, section 710, "Networking Arrangements" and related program and appendixes.
The "Interagency Statement on Retail Sales of Nondeposit Investment Products" (dated February 15, 1994), formerly contained in section 413 of the Comptroller's Handbook for National Bank Examiners and OTS Thrift Bulletin 23-2, can be found in OCC Bulletin 1994-13, "Nondeposit Investment Sales Examination Procedures: Interagency Statement."
For further information, contact Stephanie Boccio, Asset Management Group, Credit and Market Risk Division, or Joel Miller, Asset Management Group Leader, Credit and Market Risk Division, at (202) 649-6360.
Jennifer C. Kelly
Senior Deputy Comptroller and Chief National Bank Examiner