Sale or recommendation of nondeposit investment products to retail customers is the focus of a revised version of a booklet issued Tuesday by the national bank regulator, which incorporates “significant” changes to securities rules.
The Office of the Comptroller of the Currency (OCC) said version 2.0 of the “Retail Nondeposit Investment Products” booklet of the agency’s Comptroller’s Handbook provides comprehensive guidance for bank examiners on activities involving the recommendation or sale of nondeposit investment products to retail customers. It also explains the risks inherent in banks’ retail nondeposit investment product (RNDIP) sales programs and provides a framework for banks to manage those risks. The booklet also outlines expanded examination procedures for evaluating banks’ RNDIP sales activities.
Key points covered in the booklet, the OCC said, included that it:
- Incorporates significant regulatory changes adopted in the U.S. Securities and Exchange Commission’s (SEC) Regulation Best Interest that may relate to banks’ securities activities.
- Reflects OCC and interagency issuances that have been published or rescinded since January 2015.
- Provides clarity about sound risk management practices and guidance to examiners.
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