Baseball cards, rare coins, and even vintage comic books are just some of the unique assets banks may need to deal with. Real estate, loans and notes, mineral interests, and closely held or private companies can be just as challenging as artwork and collectibles from an asset management perspective

The Office of the Comptroller of the Currency (OCC) has issued a new guide as part of the Comptroller's Handbook, in the asset management series, to offer guidance to examiners and bankers on assessing and managing hard-to-value assets.

Fiduciaries generally accept these assets into trust accounts to accommodate a client's entire portfolio of assets. On rare occasions, a bank may actually purchase these types of assets but “only if [it] has the appropriate expertise, and only in accounts of significant size and sophistication,” the booklet says. Unique assets may also be used as investments, such as an income-producing shopping center or rental property, even though management presents challenges and there are potential environmental liabilities.

Because many of these asset classes require specialized expertise, controls, and valuation methods, the publication describes both the risks (operational, compliance, strategic, and reputation) associated with investing or holding such assets, and the fiduciary role in managing them.

Issues addressed in the guide, titled “Unique and Hard-to-Value Assets,” include the following:

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 appendixes include examples and worksheets related to the management and reporting of these assets.

The booklet is available online, along with others on a variety of topics.