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On January 12, 2026, the Office of the Comptroller of the Currency (OCC) issued a notice of proposed rulemaking to amend its national bank chartering regulation, 12 C.F.R. § 5.20, to clarify a point the agency views as well settled: national banks chartered as trust companies may engage in certain non-fiduciary activities in addition to fiduciary activities. Comments are due on February 11, 2026.
On January 13, 2026, we blogged about a notice of proposed rulemaking which addresses the standards and procedures the OCC uses to evaluate applications to charter new national banks.
Why the OCC Is Acting
Congress amended the National Bank Act in 1978 to expressly confirm that a national bank is not unlawfully constituted simply because its operations are limited to those of a trust company and activities related thereto. Relying on that authority, the OCC has chartered and supervised national trust banks for decades and currently oversees roughly 60 such institutions.
The current proposal responds to potential ambiguity created by a 2003 amendment to § 5.20. That amendment imposed a requirement that special purpose national banks engaging in non-fiduciary activities must perform at least one core banking function—receiving deposits, paying checks, or lending money. Although intended to apply to non-trust special purpose banks, the regulatory text could be misread to limit the activities of national trust banks as well.
What the Proposal Would Do
To eliminate confusion, the OCC proposes to revise § 5.20(e)(1)(i) by replacing references to "fiduciary activities" with the statutory phrase "the operations of a trust company and activities related thereto." The OCC would also make a conforming change to § 5.20(l).
The revised language would make clear that:
- National trust banks may engage in non-fiduciary activities related to trust operations; and
- The "core banking functions" requirement applies only to special purpose banks engaging in other business-of-banking activities, not to national trust banks.
What the Proposal Does Not Do
The OCC emphasizes that the proposal neither expands nor contracts its chartering authority. It does not create new charter types, impose new requirements, or alter safety and soundness standards. Instead, it aligns the regulation more closely with the National Bank Act and the OCC's longstanding chartering and supervisory practice.
Why It Matters
The clarification is important for trust banks, asset managers, and fintech firms that rely on or are considering a national trust bank charter. It reinforces regulatory certainty in an area where national trust banks routinely conduct non-fiduciary activities such as custody and safekeeping—activities that already involve nearly $2 trillion in assets.
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