May 2016 - Rise and Fall

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42 | TH E M R EP O RT O R I G I NAT I O N S E R V I C I N G A NA LY T I C S S E C O N DA R Y M A R K E T ORIGINATION THE LATEST Can the Regulatory Burden Be Lifted? OCC proposes changes to lighten load for banks, FSAs. B anks are about to receive some of the regulatory relief they have long been seeking. As part of the review required every 10 years by the Economic Growth and Regulatory Paperwork Reduction Act (EGRPRA) of 1996, the Office of the Comptroller of the Currency (OCC) recently pro - posed removing outdated or unnecessary provisions and rules, therefore reducing the regulatory burden on banks and federal sav- ings associations. The proposed changes an- nounced followed three Federal Register notices and six outreach meetings conducted nationwide since late 2014. In these outreach meetings, the OCC solicited com- ments from bankers, consumer and community groups, and other stakeholders or interested parties. While the FDIC, the Federal Reserve, and the OCC are required to review the EGRPRA jointly, the proposed rule changes recently announced are exclusive to the OCC and its supervision of banks and federal savings associations, according to the announcement. "Rather than delaying proposed changes until the completion of the EGRPRA review at the end of the year, the OCC is seeking to reduce undue burden sooner where possible," the OCC's an- nouncement stated. According to the OCC, the proposal complements other actions the agency has taken to further the EGRPRA's mandate both separately and with other agencies. Those actions include: • A final rule by the OCC issued last May to remove outdated or unnecessary licensing require- ments • Interagency efforts to stream- line Call Report requirements; • An interagency interim final rule that allows more qualify- ing community banks to be eligible for the 18-month exam cycle; and • Interagency guidance on the evaluation process in the ap- praisal rules. In addition to those actions, the OCC has recommended further regulatory changes to remove or reduce unnecessary regulatory burden, such as: allowing community banks an exemption from the Volcker rule and a proposal to provide federal savings associations with more flexibility to adapt to business and economic changes, which in turn would allow them to better serve their communities. The proposal would: • Remove notice and approval requirements for certain changes in permanent capital involving national banks; • Simplify certain licensing rules for business combinations in- volving federal mutual savings associations; • Clarify national bank director oath requirements; • Remove certain financial disclosure requirements for national banks; • Remove certain unnecessary regulatory reporting, account- ing, and management policy requirements for federal savings associations; • Allow the electronic submis- sion of filings required under the Securities Act of 1933 and the Securities Exchange Act of 1934; • Remove unnecessary require- ments in the electronic ac- tivities rule for federal savings associations; • Update recordkeeping and confirmation requirements for national banks' and federal savings associations' securities transactions; and • Integrate and update OCC rules for national banks and federal savings associations relating to municipal securities dealers, Securities Exchange Act disclosures, securities offer - ing disclosures, and insider and affiliate transactions.

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