ABA Calls on OCC to Halt Fiduciary Capacity, Non-Fiduciary Custody Rulemaking

In response to the OCC’s advance notice of proposed rulemaking on fiduciary capacity and non-fiduciary custody activities, ABA today submitted a comment letter urging the agency not to proceed. The rulemaking under consideration would expand the OCC’s definition of services subject to fiduciary regulations, and also establish a new set of rules governing bank custody activities. ABA stressed that no compelling reason has been given for this regulation and asserted that such regulation would be counterproductive, leading to increased risks to OCC-regulated banks.