Yes, we recommend that your Regulation O reporting form cover personal trusts as well as business trusts.

Regulation O’s definition of “related interest” includes trusts, “business or otherwise,” that are controlled by an insider. If an insider controls a trust as trustee, you would want the insider to report that information so that the bank could properly apply Regulation O’s limitations and requirements on loans made to that trust. In addition, if an insider is a beneficiary of the trust, you would want the insider to report that information because the tangible economic benefit rules potentially could apply to the trust.

For resources related to our guidance, please see:

• Federal Reserve Board, Staff Opinion 3-1062.1 (May 23, 1980) (“A trust qualifies as a company under subpart A. . . . Whether a director controls depends on whether the director is in the position to control the requisite share of the trust. Therefore, a sole trustee or a co-trustee would control the trust, and the trust would qualify as a ‘related interest’ of the director. In that situation, any extension of credit to the trust would be subject to the preferential and prior-approval requirement of Regulation O.”)

• Federal Reserve Board, Staff Opinion 3-1062.1 (May 23, 1980) (“If a director is a beneficiary of a trust or estate, an extension of credit to the trust or estate would inure to the benefit of the director. If the director has a 25 percent or more present or contingent interest in the estate or trust, the extension of credit will be considered to have been made to the director. Also, if the director, who is a beneficiary (but not a trustee) of the trust possessed the right to sell or dispose of the trust assets, terminate the trust, or replace the trustee, the director must be considered to control the trust.”)

• Regulation O, 12 CFR 215.8(b) (“Recordkeeping for insiders of the member bank. Any recordkeeping method adopted by a member bank shall: (1) Identify, through an annual survey, all insiders of the bank itself; . . .”)

• Regulation O, 12 CFR 215.2(b) (“Company means any corporation, partnership, trust (business or otherwise), association, joint venture, pool syndicate, sole proprietorship, unincorporated organization, or any other form of business entity not specifically listed herein. . . .”)

• Regulation O, 12 CFR 215.2(n) (“Related interest of a person means: (1) A company that is controlled by that person; . . . .”)

• Regulation O, 12 CFR 215.2(h) (“Insider means an executive officer, director, or principal shareholder, and includes any related interest of such a person.”)