Introduction
In recent years, the Office of the Comptroller of the Currency (OCC) has sharpened its focus on fiduciary oversight, handing down a series of high-profile enforcement actions against U.S. national banks and savings banks. These actions are not just warnings, they’re stark reminders of the real-world consequences of failing to meet fiduciary responsibilities under Regulation-9. For institutions that continue to rely on outdated processes and fragmented oversight, the cost of non-compliance could be costly.
The High Cost of Fiduciary Failure: A Wake-Up Call from the OCC
In February 2024, the OCC issued a Formal Agreement and a $65 million civil money penalty against a leading U.S. national bank for systemic deficiencies across its compliance program, investment management processes, and, most notably, violations of fiduciary standards under 12 CFR Part 9 (Reg-9).
This case underscores a critical point: Reg-9 compliance isn’t optional, it’s enforceable, auditable, and expensive when neglected. For national banks, savings banks, and trust companies offering fiduciary services, outdated or manual systems increase vulnerability to these very outcomes.
Where Banks Are Falling Short
OCC Regulation-9 places strict obligations on national banks, savings banks and trust companies to review fiduciary accounts periodically, document their actions, and ensure prudent management of assets. Yet many institutions still manage these reviews via spreadsheets, email threads, and legacy systems.
This patchwork approach leads to:
- Inefficient manual work with repeated rekeying
- Missed issues that become problems
- Untimely data and incomplete audit trails
- Poor exception tracking and missed review cycles
- Lack of oversight across teams with weak escalation processes
In an era of heightened scrutiny, these inefficiencies aren’t just operational risks, they’re regulatory liabilities.
OCC Expectations
The OCC is not waiting for institutions to self-correct. With enforcement actions being made public and regulators increasingly demanding real-time oversight, the pressure on trust departments has never been higher.
For compliance officers and fiduciary managers, they must ask:
- Are we certain every review is completed on time?
- Do we have a clean audit trail for every decision?
- Can we prove to the OCC that we’re meeting our obligations?
BITA REG-9™: A Modern Solution for a Modern Problem
Amidst this rising pressure, institutions need more than just diligence, they need automation, transparency, and control. Enter BITA REG-9, a purpose-built solution designed to meet the demands of Regulation 9 head-on.
BITA REG-9 provides:
- Automated REG-9 reviews (Initial, Admin, and Unique Asset)
- Real-time rule checks and exception alerts
- Integrated approval workflows and audit-ready reports
- Enterprise-level dashboards for senior oversight
With BITA REG-9, banks no longer have to worry about missed deadlines or manual reporting gaps. The platform ensures that every fiduciary account is reviewed, documented, and governed with precision – delivering peace of mind in a high-risk environment.
Conclusion
The OCC has made its stance clear: fiduciary failures will not be tolerated. National banks and savings banks must treat Reg-9 compliance as a top-tier priority, not a background task. As the enforcement landscape grows more unforgiving, the institutions that act now, modernizing their systems and embracing automation, will be the ones best positioned to lead with confidence, not fear.
BITA REG-9 is more than a tool, it’s your institution’s safeguard against costly mistakes and reputational harm.
