A bulletin noting banks’ ability to seek an exemption that permits longer prior notice periods for withdrawals from collective investment funds (CIFs) was issued Thursday by the Office of the Comptroller of the Currency (OCC).
The final rule, nearly identical to the interim final rule issued last August, provides that a national bank or federal savings association that administers a CIF invested primarily in real estate or other assets that are not readily marketable may require a prior notice period, not to exceed one year, to withdraw an account from a CIF. As noted in the bulletin, however, it also provides that a bank may request the OCC’s approval for extensions to the standard withdrawal period if certain criteria are met.
The final rule made one change from the interim final with respect to those criteria: The bank must “represent” (rather than “commit”) that it will act upon the withdrawal request as soon as practicable.
The final rule was published in the Federal Register and took effect Wednesday.