§ 12.101 - National bank disclosure of remuneration for mutual fund transactions.

§ 12.101 National bank disclosure of remuneration for mutual fund transactions.

Cross Reference

Link to an amendment published at 82 FR 8107, Jan. 23, 2017.

A national bank may fulfill its obligation to disclose information on the source and amount of remuneration, required by § 12.4, for mutual fund transactions by providing this information to the customer in a current prospectus, at or before completion of the securities transaction. The OCC's view is consistent with the position of the Securities and Exchange Commission (SEC) as provided in a no-action letter dated March 19, 1979, which permits confirmations for mutual funds to refer to the sales load disclosed in the prospectus. See Letter to the Investment Company Institute, reprinted in [1979 Transfer Binder] Fed. Sec. L. Rep. (CCH) 82041 (Mar. 19, 1979). The OCC would reconsider its position upon any change in the SEC's practice.