SR 23-10

The Office of the Comptroller of the Currency (OCC), the Board of Governors of the Federal Reserve System (FED), and the Federal Deposit Insurance Corporation (FDIC) issued a revised interagency statement titled Extension of the Revised Statement Regarding Status of Certain Investment Funds and their Portfolio Investments for Purposes of Regulation O and Reporting Requirements under Part 363 of FDIC Regulations (SR23-10). The statement provides an extension of exemptive relief to banks and investment companies in connection with loans granted and received if both parties are subsequently „affiliated“ due to investment companies acquisition of bank shares of same bank provided that certain conditions are met (proof of non-control of the bank by the investment company).
In detail, the agencies state that they will exercise discretion to not take enforcement action against asset managers that become principal shareholders of banks or banks that make extensions of credit to such asset managers that otherwise would violate Regulation O (please see the comment box below). The agencies also state that they will continue to not take action against banks that fail to comply with their corresponding reporting requirement pursuant to 12 CFR Part 363. The relief extends previously granted relief in that regard. In the meantime, the regulators will further consult on Regulation O to provide a final regulation on this issue.