On July 3, 2007 the OCC issued proposed rules intended to reduce the regulatory burden faced by national banks and to update various OCC regulations. The 74 page proposal was published in the Federal Register. While the changes are relatively modest, the proposal shows that the OCC is cognizant of significant regulatory burden faced by national banks. A few of the changes are outlined below:
-An applicant for a national bank would no longer need to file a proxy with the local district office and the OCC's securities practices division. Under the proposed rule filing with the securities division alone will suffice.
-The review period for a change in permanent capital is cut from 30 days to 15 days.
-Bank officers and employees who make investment recommendations for customers will have 20 additional days to report personal transactions to the bank. They will now have 30 days after the end of the quarter to make such reports.
-When opening an intermittent branch every year at a specific location or event multiple applications will no longer be required.
The changes given above are only examples of the changes proposed. In addition to these, the proposed changes streamline the rules governing electronic banking, community development investments, record keeping requirements for securities transactions, fiduciary powers, and activities for operating subsidiaries.
State bank regulators may review these changes to determine whether they should follow suit to maintain some semblance of competitive equality.
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