A small section in the Office of the Comptroller of the Currency’s (OCC) Comptroller’s Handbook on Investment Management, released in August, provides advisors with a peek into the criteria national banks use when selecting an investment manager or independent investment advisor to advise a fiduciary account.
The three-page Appendix F, called “Guidelines for Selecting Investment Managers and Advisers,” says that at a minimum, a fiduciary manager should obtain full information on an investment firm’s investment and business approaches, professional resources, financial strength, historical performance, regulatory history, personnel turnover, comparative fees, and other relevant factors. Advisors can download the OCC handbook for free by logging on to http://www.occ.treas.gov/handbook/amgt.htm.