Certified Regulatory Compliance Manager (CRCM) — Question 269

ACME national bank plans to acquire Smith Brothers insurance agency and make it an operating subsidiary of the bank. ACME is considered a well-managed and adequately capitalized bank. What regulatory-related action must ACME take to obtain the agency?

Answer options

• A. Complete the sale of the agency and notify the OCC within 10 days
• B. Complete the sale of the agency and notify the OCC within 30 days
• C. No regulatory notice is required
• D. Notify the OCC before completing the sale

Correct answer: D

Explanation

The correct answer is D because banks must notify the OCC before completing acquisitions to ensure compliance with regulatory requirements. Options A and B incorrectly suggest that notification occurs after the sale, which does not align with regulatory procedures. Option C is incorrect as regulatory notice is indeed required in this situation.