SUITABILITY: Final rule requiring banks to determine whether customers understand the risks associated with buying government securities. Bank brokers and dealers must obtain information on the financial and tax status and investment objectives of retail customers. They also have to be convinced that institutional investors evaluate investment recommendations and risk independently. To be published soon. Effective July 1.
CORPORATES: The National Credit Union Administration imposed curbs on investments and lending by corporate credit unions and raised capital requirements. Corporates will be placed in one of four categories tied to their capital and the composition of their investment portfolios. Corporates will have to maintain at least 4% capital and be barred from investing in derivatives or foreign countries unless they apply for broader investment powers. In exchange for these added powers, corporates would have to hold 6% capital or more and undergo added oversight. To be published soon. Effective Jan. 1.
REG Z: The Fed revised a staff commentary explaining how to disclose mortgage fees and debt cancellation insurance premiums. Published March 6. Effective Oct. 1.
BROKER-DEALERS: The FDIC eliminated duplicate securities record keeping and confirmation requirements imposed on banks that enter into networking arrangements with broker-dealers, as long as the bank customer is properly informed. However, the agency decided to omit a proposal that would have required some bank directors to report personal securities transactions. Published March 5 and effective April 1.
FOREX: The Federal Financial Institutions Examination Council withdrew a guideline on internal controls for foreign exchange operations in U.S. commercial banks. Published and effective March 4.
NEW POWERS: The Fed adopted a rule opening more data processing business to banking companies, streamlining application procedures, and abolishing tying restrictions on nonbanks. Published Feb. 28. Effective April 21.
ADVANCES: The Federal Housing Finance Board adopted an interim rule authorizing the 12 system banks to certify whether nonmember institutions are eligible to receive advances. Published and effective Feb. 27.
CALL REPORTS: The banking agencies issued the revamped first-quarter 1997 call report form. Published Feb. 21. Effective March 31.
SECURITIES: The FDIC adopted a rule that incorporates SEC regulations for registration of securities by nonmember banks. Published Feb. 14. Effective Jan. 1.
EXAM CYCLE: The banking and thrift agencies adopted an interim rule making banks with up to $250 million of assets eligible for an 18-month exam cycle. Published and effective Feb. 12.