Question & Answer

Question: We heard that Regulation P, which implements the Bank Protection Act, is no longer Reg P, but is now part of Regulation H. However, it is our understanding that Regulation H only applies to State Banks, not National Banks. Can you clarify?

Answer: That's the way it is. If you are regulated by the Federal Reserve System, Reg P is now Reg H, according to Jean Anderson, Staff Attorney, Legal Division of the FRS. If you are regulated by the FDIC you will refer to Subpart A of 12CFR Part 326-Minimum Security Procedures; if by OCC it's Subpart A of 12CFR Part 21- Minimum Security Devices and Procedures; if by OTS it's 12 CFR Part 568-Security Procedures. Basically they all say the same thing. The reason security officers most often refer to security regulations as "Reg P" is probably because Fed's title identifies with the Bank Protection Act.

The biggest difference between the old Reg P and the new Reg H is the expansion of the regulation. Reg H also covers BSA responsibilities and SAR reporting. Look for the other regulatory agencies to shortly follow Fed's lead in this. At the present time, responsibilities for duties besides those covering security are in different areas of the other agencies' regulations.

Copyright © 1997 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 7, No. 10, 8/97