The report of the second Economic Growth and Regulatory Paperwork Reduction Act (EGRPRA) review has gone to the US Congress. It contains some rule-cutting announcements but these are in line with a law signed by President Obama, before President Trump's anti-regulation stance.

The purpose of every report and every review is to identify outdated, unnecessary, or unduly burdensome regulations that impact a bank's ability to serve its custo​mers effectively and efficiently. President Trump has said that he wants to cut the number of federal regulations by 75% which cancelling two existing regulations for every new one and this law, which came into force in 2015, ought to help.

The report states that the Office of the Comptroller of the Currency has issued two final rules to implement 'EGRPRA comments' (suggestions from bankers in accordance with the Act) and make other regulatory burden-reducing changes by issuing two final rules amending OCC regulations based on suggestions made by EGRPRA commenters with respect to licensing transactions; electronic activities; the electronic submission of securities-related reports to the regulators; and collective investment funds. These final rules also make a number of other changes that reduce regulatory burdens and update regulatory requirements, specifically with respect to business combinations; changes to permanent capital; bank directors; fidelity bonds; securities recordkeeping and confirmation; securities offering disclosures; and reporting, accounting, and management policies. The OCC plans to propose additional regulatory amendments in one form or another.

The OCC recently issued a second rule based in part on comments received through the EGRPRA process; this, too, is mentioned in the report. Among other things, this 'final rule' responds to EGRPRA comments by:

• removing the requirement for any federal savings association (FSA) to notify the OCC before establishing a transactional website;
• providing for the electronic submission of securities-related reports to the regulators;
• removing the obligation for a national bank to make a copy of its collective investment fund plan available for public inspection at its main office during all banking hours; and
• adjusting the asset threshold for mini-funds (a type of collective investment fund) for inflation from $1 million to $1½ million.

With respect to securities recordkeeping and confirmations, that rule:

• replaces the more detailed procedures for record maintenance and storage for FSAs with the less burdensome requirements applicable to national banks;
• permits national banks to use a third party to provide record storage or maintenance;
• eliminates the requirement for a national bank to send a copy of a securities transaction confirmation to a customer when such confirmation is sent by a registered broker/dealer, as long as an appropriate written compensation agreement exists with the customer; and
• provides that an FSA that has previously determined compensation in a written agreement with a customer does not need to provide a remuneration statement for each securities transaction with that customer.

These changes took effect on April Fools' Day.

Fiduciary activities

The OCC plans to consider further changes to its fiduciary rules to take account of other EGRPRA comments. One commenter wanted it to give banks more leeway when it came to the retention of fiduciary records. The OCC’s current rule, 12 CFR 9.8(b), requires a national bank to maintain fiduciary records for a minimum of three years. The OCC agrees that it would be useful to think of aligning this requirement more closely with state statutes of limitations.

The federal banking agencies are required to undertake the EGRPRA review by statute. During the EGRPRA review, the agencies have made efforts to satisfy EGRPRA comment and reduce the regulatory burden, although the main candidates for relief are community banks which are not the concern of this website.

Fewer Bank Secrecy Act reviews for certain qualifying institutions

In general, federal agencies review BSA compliance programmes during "safety and soundness" visits. Therefore, institutions with assets between $500 million and $1 billion that are now eligible for such every 18 months will also generally be subject to such reviews less frequently.

The OCC is continuing to integrate its rules for national banks and FSAs into a single set of rules, where possible. The aim is to reduce regulatory duplication.