OCC Guidance on Hard-to-Value Assets

The OCC is issuing a new booklet (titled "Unique and Hard-to-Value Assets") of the Comptroller's Handbook in the asset management series, which provides guidance to examiners and bankers on assessing the management of unique and hard-to-value assets. Asset management accounts can hold insurance, collectibles and animals as well as loans and leases. Many of these asset classes require specialized expertise, controls and valuation methods. The booklet addresses the following issues:

• Discussions of the types of unique and hard-to-value assets and the specific characteristics of each.
• Asset review guidance including pre-acceptance, post-acceptance, and annual investment reviews.
• The ways that each category class is typically managed, including valuation, ownership and reporting issues.
• Several appendices, which include examples of fundamental management and reporting of unique assets.

[Lofchie Comment. The booklet may be of use to entities other than banks, such as private funds or other investors, who may hold illiquid assets.]

View full description here (links externally to OCC website). Link to booklet here (links externally to OCC website: the last booklet in the asset management section).