10/11/2012 OCC publishes final STIF rule

The Office of the Comptroller on Tuesday published in the Federal Register a final rule that revises the requirements imposed on banks by the agency’s short-term investment fund regulation. The final rule adds safeguards designed to address the risk of loss to a STIF’s principal.

They include measures governing the nature of a STIF’s investments; ongoing monitoring of its mark-to-market value; greater transparency and regulatory reporting about a STIF’s holdings; and procedures to protect fiduciary accounts from undue dilution of their participating interests if the STIF loses the ability to maintain a stable net asset value - or NAV.

The OCC said that it will continue to evaluate the new rule in light of future policy assessments and initiatives concerning stable NAV funds, and it will take additional actions if appropriate. The final rule is effective on July 1, 2013.

Read more.
Read the final rule.