Collective Investment Funds: Prior Notice Period for Withdrawals

Collective Investment Funds: Prior Notice Period for Withdrawals
Subject: Collective investment funds
Agency: OCC
Status: Interim final rule

OCC regulations permit a national bank or (collectively, a bank) administering a fund (CIF) that is in real estate or other assets that are not to require a prior notice period, not to exceed one year, for withdrawals from the fund. The OCC interprets this notice provision as requiring the bank to withdraw an the prior notice period or, if permissible under the CIF’s written plan, within one year after prior notice was required (standard withdrawal period). The OCC is issuing an interim final rule to codify the standard withdrawal period and create a limited exception that allows a bank, with OCC approval, to withdraw an account from the CIF up to one year beyond the with opportunities for further extensions, provided that certain conditions are satisfied. The exception is intended to enable a bank to preserve the value of the CIF’s assets for the benefit of fund participants during unanticipated and severe market conditions, such as those resulting from the current national health emergency concerning the coronavirus disease (COVID-19) outbreak.

FR Doc: 2020-17322
Date proposed: Aug. 4, 2020
Comments due date:

Sept. 14, 2020

Final rule effective date: Aug. 13, 2020
Rule compliance date:
Agency release:
Related Reg Report item(s): OCC interim rule provides exception allowing longer withdrawal periods for collective investment funds

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