OCC revises licensing manual booklet on subsidiaries

A revised “Subsidiaries and Equity Investments” booklet of the Comptroller’s Licensing Manual was issued Jan. 31 by the Office of the Comptroller of the Currency (OCC), the agency said in its most recent bulletin to supervised institutions.

In Bulletin 2019-4, OCC says the updated “Subsidiaries and Equity Investments” booklet has been expanded to provide additional guidance describing activities of federal savings associations (FSAs) that the OCC, or a predecessor regulator of FSAs (the former Office of Thrift Supervision and its predecessor, the Federal Home Loan Bank Board), has determined may be performed in operating subsidiaries and service corporations or through pass-through investments.

The booklet:

  • describes the various types of subsidiaries and other business entities that banks may establish or acquire and the activities in which such entities may engage;
  • describes the various equity investments that banks can make;
  • provides detailed guidance on permissible and incidental activities and conditions for establishing and operating these entities or investments;
  • provides information on the statutory and regulatory factors that the Office of the Comptroller of the Currency (OCC) considers when reviewing and processing applications or notices;
  • provides guidance on specific requirements for insurance, electronic, and fiduciary activities.

OCC Bulletin 2019-4

Comptroller’s Licensing Manual

“Subsidiaries and Equity Investments” booklet (January 2019)