Question

Regulation 12 CFR 9 of the OCC requires that all fiduciary accounts for which the bank has investment responsibilities be reviewed ______________.

1) every calendar year.
2) promptly upon acceptance, which has been interpreted to be the date of the account instrument.
3) quarterly unless otherwise dictated by the account instrument.
4) every fifteen months.

Answer 1

Regulation 12 CFR 9 requires fiduciary accounts with investment responsibilities to be reviewed annually by the bank. This is part of the OCC's oversight to ensure financial stability within these institutions.

Step-by-step explanation:

Regulation 12 CFR 9 of the Office of the Comptroller of the Currency (OCC) requires that all fiduciary accounts for which the bank has investment responsibilities be reviewed every calendar year. This regulation ensures that banks maintain positive net worth and that the assets within fiduciary accounts are not too risky. In the broader context of bank supervision, the OCC along with other agencies such as the Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve, have the role of monitoring and regulating financial institutions to ensure their stability and soundness.