Which types of financial institutions must comply with local law regarding fiduciary powers?

Fiduciary powers refer to the authority of financial institutions to manage assets on behalf of others, which often involves a legal responsibility to act in the best interest of their clients. In the financial regulatory landscape, all banks, regardless of their chartering authority—be it state or federal—are subject to local laws regarding fiduciary responsibilities. This includes any state-chartered banks, whether they are members of the Federal Reserve or not, as well as national banks chartered by the Comptroller of the Currency.

Each state has its own regulations that govern fiduciary activities, and these rules apply to any financial institution operating within the state's jurisdiction. Compliance with these local laws is crucial for maintaining the integrity and trust of financial operations, alongside adhering to the general standards set by federal regulators. As such, it is essential for all banks to understand and comply with the specific fiduciary laws as mandated by their respective states to ensure they operate within legal and ethical guidelines.