Regulation 9 allows which of the following?

• A. A national bank acting as trustee to sell assets to or purchase assets from another trust account for which it serves as trustee.
• B. Directors of national banks to purchase assets from a trust administered by the national bank if the price is equitable.
• C. A national bank trust department managing a trust to pay a trust officer individually for work as a co-trustee, without approval of the board of directors.
• D. Advertisement of a common trust fund's performance as long as the reporting measurements meet AIMR standards.

Answer: (A)

Regulation 9 governs how national banks may handle fiduciary activities, including permissible internal transactions between trust accounts the bank administers. The most appropriate provision is that the bank acting as trustee may sell assets to or purchase assets from another trust account for which it serves as trustee. This is allowed because the bank is acting in its fiduciary capacity for both accounts, so transfers between those accounts can be made at fair value and under proper oversight, helping to manage portfolios and liquidity without creating a personal benefit for insiders.

Other options would involve conflicts or governance concerns Regulation 9 aims to prevent. Having directors buy assets from a trust the bank administers could create personal gain from fiduciary relationships. Paying a trust officer personally for co-trustee duties without board approval bypasses required governance and oversight. Advertising a common trust fund’s performance touches regulatory standards outside the specific fiduciary-transaction framework of Regulation 9 and isn’t the type of internal, compliant transfer Regulation 9 authorizes.