In November 2020, the Office of the Comptroller of the Currency released final rules updating (i) the regulations applicable to the activities and operations of national banks and Federal savings associations and (ii) the licensing policies and procedures applicable to national banks and Federal savings associations.
The Final Activities Rule codifies three major areas of OCC interpretations, also setting out clear procedures for these activities: the derivatives powers of national banks; national banks’ and Federal savings associations’ investments in tax equity finance transactions; and national banks’ and Federal savings associations’ memberships in payment systems, among other things. In addition to various other substantive and technical revisions, the Final Licensing Procedures create additional flexibility for national banks with respect to their operating subsidiaries and non-controlling investments and provide clarity for the requirements related to subordinated debt. The Final Activities Rule is effective as of April 1, 2021 and the Final Licensing Procedures generally are effective as of January 1, 2021.
Our Alert Memorandum provides an overview of each of the final rules and highlights key takeaways.