OCC 99 40
Subject: Year 2000 Standards for Safety and Soundness for Bank
Transfer Agents and Broker-Dealers
Description: Interim Guidelines
Date:  October 15, 1999

TO:  Chief Executive Officers of All National Banks, Department
     and Division Heads, and All Examining Personnel

The attached interim guidelines establishing Year 2000 (Y2K)
standards for safety and soundness for national bank transfer
agents and broker-dealers ("Supplemental Guidelines") became
effective on September 30, 1999.  Comments are due by November
29, 1999.

The OCC has previously issued Y2K safety and soundness standards
that national banks are expected to meet to achieve Y2K readiness
in their "mission-critical" systems.  The attached guidelines
supplement the earlier standards by addressing transfer agent and
broker dealer activities where Y2K readiness is important, even
if the activity is not mission-critical in a particular bank. 
The "Supplemental Guidelines" impose only two requirements. 
First, no later than November 1, 1999, each bank transfer agent
and broker or dealer must identify all transfer agent and broker
or dealer systems that are not Y2K ready.  Second, by November
15, 1999, the bank transfer agent and bank broker or dealer must
develop and implement an effective written business-resumption
contingency plan for each system that is not Y2K ready.

The "Supplemental Guidelines" apply only to the following: (1)
registered transfer agents that are national banks, national bank
operating subsidiaries, and federal branches subject to the
safety and soundness provisions of section 39 of the Federal
Deposit Insurance Act; and (2) national banks and federal
branches subject to the provisions of section 39 that effect more
than a specified de minimis number of securities brokerage or
dealer transactions. 

For more information, contact Karl Betz, attorney, Legislative
and Regulatory Activities Division, (202) 874-5090; Stuart
Feldstein, assistant director, Legislative and Regulatory
Activities Division, (202) 874-5090 Vaughn Folks, national bank
examiner, (202) 874-4270; or Joe Malott, national bank examiner,
(202) 874-4967.  


_____________________________________
Julie L. Williams
First Senior Deputy Comptroller and Chief Counsel

Attachment 64 FR 52638