TO:  All Users of the Comptroller's Handbook for National Bank Examiners

PURPOSE

This issuance transmits a new section 413, Retail Nondeposit Investment Sales, for the Comptroller's
Handbook for National Bank Examiners.  This section should be inserted in the handbook at the end
of the "Other Areas of Examination Interest" section, behind section 412, Discount Brokerage
Activity.

REFERENCES

Banking Circular 274, Retail Nondeposit Investment Sales, is rescinded and replaced by new section
413 to the Comptroller's Handbook for National Bank Examiners, dated February 1994, attached.

BACKGROUND

On July 19, 1993, the Office of the Comptroller of the Currency issued Banking Circular 274, Retail
Nondeposit Investment Sales, which provided guidelines for national banks involved in the sale to
retail customers of mutual funds, annuities, and other nondeposit investments.  Those guidelines
were superseded on February 15, 1994, by the issuance of an Interagency Statement, developed by
the OCC, the Federal Reserve Board, the FDIC, and the OTS.  The Interagency Statement will apply
uniform standards to federally insured financial institutions offering these services.

SCOPE

The Interagency Statement is incorporated in this insert, which provides national bank examiners
with procedures for examining the nondeposit investment sales activities of national banks.  The
questions and procedures presented here check for compliance with the Interagency Statement as
well as laws, rules, and regulations.  They also provide national bank examiners with a basis for
evaluating management and controls in this type of operation.
RESPONSIBLE OFFICE

Questions concerning the Interagency Statement or any part of the insert may be directed to the
Office of the Chief National Bank Examiner, Capital Markets Group, in Washington, DC at (202)
874-5070.








_________________________________________
Susan F. Krause
Senior Deputy Comptroller for Bank Supervision Policy

Enclosure