The FDIC has proposed to rescind the former Office of Thrift Supervision’s rule on fiduciary powers of state savings associations and amend current FDIC regulations regarding consent to exercise trust powers to reflect their applicability to both state savings associations and state nonmember banks.
The proposal would add a section to the FDIC rules clarifying that state non-member banks and state savings associations must seek prior written consent from the FDIC to exercise trust powers granted by chartering authorities. It would also include a change that would permit state savings associations to act as trustees or custodians of certain qualifying accounts (such as IRAs, health savings accounts and education savings accounts) as long as the accounts are invested in bank deposit products and the bank does not have investment discretion. For more information, contact ABA’s Phoebe Papageorgiou.
