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B-332458 1 (2020-09-01)

handle is hein.gao/gaobaebus0001 and id is 1 raw text is: GAOU.S. GOVERNMENT ACCOUNTABILITY OFFICE 441 G St. N.W. Washington, DC 20548 B-332458 September 1, 2020 The Honorable Mike Crapo Chairman The Honorable Sherrod Brown Ranking Member Committee on Banking, Housing, and Urban Affairs United States Senate The Honorable Maxine Waters Chairwoman The Honorable Patrick McHenry Ranking Member Committee on Financial Services House of Representatives Subject: Department of the Treasury, Office of the Comptroller of the Currency: Collective Investment Funds: Prior Notice Period for Withdrawals Pursuant to section 801 (a)(2)(A) of title 5, United States Code, this is our report on a major rule promulgated by the Department of the Treasury, Office of the Comptroller of the Currency (OCC) entitled Collective Investment Funds: Prior Notice Period for Withdrawals (RIN: 1557- AE99). We received the rule on August 18, 2020. It was published in the Federal Register as an interim final rule, request for comment on August 13, 2020. 85 Fed. Reg. 49229. The interim final rule has an effective date of August 13, 2020. OCC is holding a comment period through September 14, 2020. OCC states its regulations permit a bank administering a collective investment fund (CIF) that is invested in certain assets to require a prior notice period for withdrawals from the fund, which OCC interprets as requiring the bank to withdraw an account within the prior notice period or within 1 year after prior notice was required (standard withdrawal period). According to OCC, the interim final rule codifies the standard withdrawal period of 1 year, as interpreted by OCC, and creates a limited exception that allows a bank, with OCC approval, to withdraw an account from a CIF up to 1 year beyond the standard withdrawal period, with opportunities for further extensions, provided that certain conditions are satisfied. OCC stated the exception is intended to enable a bank to preserve the value of the CIF's assets for the benefit of fund participants during unanticipated and severe market conditions, such as those resulting from the current national health emergency concerning the coronavirus disease (COVID-19) outbreak. The Congressional Review Act (CRA) requires a 60-day delay in the effective date of a major rule from the date of publication in the Federal Register or receipt of the rule by Congress, whichever is later. 5 U.S.C. § 801(a)(3)(A). The 60-day delay in effective date can be waived, however, if the agency finds for good cause that delay is impracticable, unnecessary, or

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