Asset Management: Updated Comptroller’s Handbook Booklet and Rescissions

The Office of the Comptroller of the Currency (OCC) today issued version 1.0 of the “Asset Management” booklet of the Comptroller’s Handbook. This booklet provides an overview of the asset management business and guidance on sound risk management processes. Version 1.0 is a targeted update that clarifies the OCC’s expectations with respect to fiduciary audit requirements under 12 CFR 9.9 and 12 CFR 150.440–480. In addition, this update provides for consistency during OCC’s examination of bank fiduciary audit activities. The OCC intends to publish a more extensive and comprehensive update to the entire booklet at a later date.

Rescission

The updated booklet replaces the booklet of the same title issued December 2000.

Note for Community Banks

The booklet applies to the OCC’s supervision of community banks that engage in asset management activities.

Highlights

This updated booklet expands the audit section to

• clarify the meaning of “significant fiduciary activities” and the OCC’s expectations regarding the frequency of audits under a continuous audit system.
• incorporate guidance on audit oversight, requirements, risk assessment, planning, independence, and reporting expectations.
• add language from 12 CFR 150 that applies to federal savings associations.
• outline audit committee membership requirements and responsibilities.
• clarify determination of audit scope and coverage.
• define a robust, well-documented, risk assessment that supports significant fiduciary activities and development of a meaningful audit plan.

Further Information

Please contact Chizoba Egbuonu, Director for Asset Management, at (202) 649-6360.

Grovetta N. Gardineer
Senior Deputy Comptroller for Bank Supervision Policy

Related Link

Topic(s):

• Asset Management
• Capital Markets