{"description":"Documents matching '\"custodial accounts\"' and from Federal Deposit Insurance Corporation","count":9,"total_pages":1,"results":[{"title":"Recordkeeping for Custodial Accounts","type":"Proposed Rule","abstract":"The Federal Deposit Insurance Corporation (FDIC) is proposing requirements that would strengthen FDIC-insured depository institutions' (IDI) recordkeeping for custodial deposit accounts with transactional features and preserve beneficial owners' and depositors' entitlement to the protections afforded by Federal deposit insurance. The proposal is intended to promote the FDIC's ability to promptly make deposit insurance determinations and, if necessary, pay deposit insurance claims \"as soon as possible\" in the event of the failure of an IDI holding custodial accounts with transactional features. The proposed requirements also are expected to result in depositor and consumer protection benefits, such as promoting timely access by consumers to their funds, even in the absence of the failure of an IDI. The requirements described in this document would only apply to IDIs offering custodial accounts with transactional features and that are not specifically exempted as provided in this document.","document_number":"2024-22565","html_url":"https://www.federalregister.gov/documents/2024/10/02/2024-22565/recordkeeping-for-custodial-accounts","pdf_url":"https://www.govinfo.gov/content/pkg/FR-2024-10-02/pdf/2024-22565.pdf","public_inspection_pdf_url":"https://public-inspection.federalregister.gov/2024-22565.pdf?1727786728","publication_date":"2024-10-02","agencies":[{"raw_name":"FEDERAL DEPOSIT INSURANCE CORPORATION","name":"Federal Deposit Insurance Corporation","id":164,"url":"https://www.federalregister.gov/agencies/federal-deposit-insurance-corporation","json_url":"https://www.federalregister.gov/api/v1/agencies/164","parent_id":null,"slug":"federal-deposit-insurance-corporation"}],"excerpts":"necessary, pay deposit insurance claims “as soon as possible” in the event of the failure of an IDI holding <span class=\"match\">custodial accounts</span> with transactional features. The proposed requirements also are expected to result in depositor and consumer protection benefits, such as promoting timely access by consumers to their funds, even in the absence of the failure of an IDI. The requirements described in this document would only apply to IDIs offering <span class=\"match\">custodial accounts</span> with transactional features and that are not specifically exempted as provided in this document. \n"},{"title":"Recordkeeping for Custodial Accounts; Extension of Comment Period","type":"Proposed Rule","abstract":"On October 2, 2024, the FDIC published in the Federal Register a proposed rule that would strengthen FDIC-insured depository institutions' (IDI) recordkeeping for custodial deposit accounts with transactional features and preserve beneficial owners' and depositors' entitlement to the protections afforded by Federal deposit insurance. The proposed rule provided for a 60-day comment period, which closes on December 2, 2024. The FDIC has determined that an extension of the comment period until January 16, 2025, is appropriate. This action will allow interested parties additional time to analyze the proposal and prepare comments.","document_number":"2024-27097","html_url":"https://www.federalregister.gov/documents/2024/11/20/2024-27097/recordkeeping-for-custodial-accounts-extension-of-comment-period","pdf_url":"https://www.govinfo.gov/content/pkg/FR-2024-11-20/pdf/2024-27097.pdf","public_inspection_pdf_url":"https://public-inspection.federalregister.gov/2024-27097.pdf?1732023946","publication_date":"2024-11-20","agencies":[{"raw_name":"FEDERAL DEPOSIT INSURANCE CORPORATION","name":"Federal Deposit Insurance Corporation","id":164,"url":"https://www.federalregister.gov/agencies/federal-deposit-insurance-corporation","json_url":"https://www.federalregister.gov/api/v1/agencies/164","parent_id":null,"slug":"federal-deposit-insurance-corporation"}],"excerpts":""},{"title":"Unsafe and Unsound Banking Practices: Brokered Deposits Restrictions","type":"Proposed Rule","abstract":"The FDIC is inviting comment on proposed revisions to its regulations relating to the brokered deposits restrictions that apply to less than well capitalized insured depository institutions. The proposed rule would create a new framework for analyzing certain provisions of the \"deposit broker\" definition, including \"facilitating\" and \"primary purpose.\" The proposed rule would also establish an application and reporting process with respect to the primary purpose exception. The application process would be available to insured depository institutions and third parties that wish to utilize the exception.","document_number":"2019-28275","html_url":"https://www.federalregister.gov/documents/2020/02/10/2019-28275/unsafe-and-unsound-banking-practices-brokered-deposits-restrictions","pdf_url":"https://www.govinfo.gov/content/pkg/FR-2020-02-10/pdf/2019-28275.pdf","public_inspection_pdf_url":"https://public-inspection.federalregister.gov/2019-28275.pdf?1581083114","publication_date":"2020-02-10","agencies":[{"raw_name":"FEDERAL DEPOSIT INSURANCE CORPORATION","name":"Federal Deposit Insurance Corporation","id":164,"url":"https://www.federalregister.gov/agencies/federal-deposit-insurance-corporation","json_url":"https://www.federalregister.gov/api/v1/agencies/164","parent_id":null,"slug":"federal-deposit-insurance-corporation"}],"excerpts":"to enable cardholders to make purchases throughout the interbank payment system and that prepaid cards are a source of stable funding. One trade association argued that funds underlying prepaid cards are not “hot \n \n money” because they are typically held in pooled <span class=\"match\">custodial accounts</span> and the IDI is generally required to receive written approval of its primary federal regulator before assuming a large transfer of pooled funds. A few commenters noted that funds underlying prepaid cards should not be considered brokered deposits because they are low"},{"title":"Recordkeeping for Timely Deposit Insurance Determination","type":"Rule","abstract":"The FDIC is amending its rule entitled \"Recordkeeping for Timely Deposit Insurance Determination\" to clarify the rule's requirements, better align the burdens of the rule with the benefits, and make technical corrections.","document_number":"2019-15535","html_url":"https://www.federalregister.gov/documents/2019/07/30/2019-15535/recordkeeping-for-timely-deposit-insurance-determination","pdf_url":"https://www.govinfo.gov/content/pkg/FR-2019-07-30/pdf/2019-15535.pdf","public_inspection_pdf_url":"https://public-inspection.federalregister.gov/2019-15535.pdf?1564404316","publication_date":"2019-07-30","agencies":[{"raw_name":"FEDERAL DEPOSIT INSURANCE CORPORATION","name":"Federal Deposit Insurance Corporation","id":164,"url":"https://www.federalregister.gov/agencies/federal-deposit-insurance-corporation","json_url":"https://www.federalregister.gov/api/v1/agencies/164","parent_id":null,"slug":"federal-deposit-insurance-corporation"}],"excerpts":"would be insured as described in 12 CFR 330.13. The proposed rule also made a technical amendment to § 370.5(b)(4) to correct an incorrect cross reference. \n Four commenters were supportive of the proposed changes. One suggested that the list be expanded to include <span class=\"match\">custodial accounts</span>, agency accounts, and fiduciary accounts not used for day to day transactions. \n The Final Rule \n Section 370.5(b) of the final rule provides an enumerated list of accounts for which a covered institution need not take the actions prescribed under § 370.5(a). In the"},{"title":"Unsafe and Unsound Banking Practices: Brokered Deposits and Interest Rate Restrictions","type":"Proposed Rule","abstract":"The Federal Deposit Insurance Corporation (FDIC) is undertaking a comprehensive review of the regulatory approach to brokered deposits and the interest rate caps applicable to banks that are less than well capitalized. Since the statutory brokered deposit restrictions were put in place in 1989, and amended in 1991, the financial services industry has seen significant changes in technology, business models, and products. In addition, changes to the economic environment have raised a number of issues relating to the interest rate restrictions. A key part of the FDIC's review is to seek public comment through this Advance Notice of Proposed Rulemaking (ANPR) on the impact of these changes. The FDIC will carefully consider comments received in response to this ANPR in determining what actions may be warranted.","document_number":"2018-28273","html_url":"https://www.federalregister.gov/documents/2019/02/06/2018-28273/unsafe-and-unsound-banking-practices-brokered-deposits-and-interest-rate-restrictions","pdf_url":"https://www.govinfo.gov/content/pkg/FR-2019-02-06/pdf/2018-28273.pdf","public_inspection_pdf_url":"https://public-inspection.federalregister.gov/2018-28273.pdf?1549374319","publication_date":"2019-02-06","agencies":[{"raw_name":"FEDERAL DEPOSIT INSURANCE CORPORATION","name":"Federal Deposit Insurance Corporation","id":164,"url":"https://www.federalregister.gov/agencies/federal-deposit-insurance-corporation","json_url":"https://www.federalregister.gov/api/v1/agencies/164","parent_id":null,"slug":"federal-deposit-insurance-corporation"}],"excerpts":"the FDIC has not distinguished between (1) acting with the purpose of placing deposits for other parties, and (2) acting with the purpose of enabling other parties to use deposits to make purchases. When funds are placed into demand deposit accounts (as in the case of <span class=\"match\">custodial accounts</span> used by prepaid card companies), the deposits will be available for withdrawals or transfers or spending. Thus, prepaid card companies have not been viewed as meeting the “primary purpose” exception.\n \n \n Software applications for personal use that involve funds being"},{"title":"Assessments","type":"Rule","abstract":"The FDIC is amending its rules to refine the deposit insurance assessment system for small insured depository institutions that have been federally insured for at least five years (established small banks) by: Revising the financial ratios method so that it is based on a statistical model estimating the probability of failure over three years; updating the financial measures used in the financial ratios method consistent with the statistical model; and eliminating risk categories for established small banks and using the financial ratios method to determine assessment rates for all such banks (subject to minimum or maximum initial assessment rates based upon a bank's CAMELS composite rating). Under current regulations, deposit insurance assessment rates will decrease once the deposit insurance fund (DIF or fund) reserve ratio reaches 1.15 percent. The final rule preserves the range of initial assessment rates authorized under current regulations.","document_number":"2016-11181","html_url":"https://www.federalregister.gov/documents/2016/05/20/2016-11181/assessments","pdf_url":"https://www.govinfo.gov/content/pkg/FR-2016-05-20/pdf/2016-11181.pdf","public_inspection_pdf_url":"https://public-inspection.federalregister.gov/2016-11181.pdf?1463661920","publication_date":"2016-05-20","agencies":[{"raw_name":"FEDERAL DEPOSIT INSURANCE CORPORATION","name":"Federal Deposit Insurance Corporation","id":164,"url":"https://www.federalregister.gov/agencies/federal-deposit-insurance-corporation","json_url":"https://www.federalregister.gov/api/v1/agencies/164","parent_id":null,"slug":"federal-deposit-insurance-corporation"}],"excerpts":"consider how banks use brokered deposits and whether they remain profitable and well capitalized. The FDIC also received letters on both the 2016 revised NPR and the 2015 NPR suggesting that specific types of brokered deposits—including stable retail deposits, certain <span class=\"match\">custodial accounts</span>, and longer maturing brokered CDs used to manage interest rate risk—be excluded from the brokered deposit ratio, and arguing that these deposits have similar characteristics to reciprocal deposits and are less risky than other brokered deposits. \n \n Small banks do not"},{"title":"Large Bank Deposit Insurance Determination Modernization","type":"Proposed Rule","abstract":"The FDIC is seeking comment on whether certain insured depository institutions that have a large number of deposit accounts, such as more than two million accounts should be required to undertake actions to ensure that, if one of these banks were to fail, depositors would have access to their FDIC-insured funds in a timely manner (usually within one business day of failure). Specifically, the FDIC is seeking comment on whether these banks should be required to: (1) Enhance their recordkeeping to maintain (and be able to provide the FDIC) substantially more accurate and complete data on each depositor's ownership interest by right and capacity (such as single or joint ownership) for all or a large subset of the bank's deposit accounts; and (2) develop and maintain the capability to calculate the insured and uninsured amounts for each depositor by deposit insurance capacity for all or a substantial subset of deposit accounts at the end of any business day. This ANPR does not contemplate imposing these requirements on community banks.","document_number":"2015-09650","html_url":"https://www.federalregister.gov/documents/2015/04/28/2015-09650/large-bank-deposit-insurance-determination-modernization","pdf_url":"https://www.govinfo.gov/content/pkg/FR-2015-04-28/pdf/2015-09650.pdf","public_inspection_pdf_url":"https://public-inspection.federalregister.gov/2015-09650.pdf?1430138717","publication_date":"2015-04-28","agencies":[{"raw_name":"FEDERAL DEPOSIT INSURANCE CORPORATION","name":"Federal Deposit Insurance Corporation","id":164,"url":"https://www.federalregister.gov/agencies/federal-deposit-insurance-corporation","json_url":"https://www.federalregister.gov/api/v1/agencies/164","parent_id":null,"slug":"federal-deposit-insurance-corporation"}],"excerpts":"to their funds immediately.\n \n • In addition to brokered deposits that are reported on the Call Report, how many accounts with pass-through coverage do banks with a large number of deposit accounts have (numbers and dollars)? \n • For what types of brokered, agent or <span class=\"match\">custodial accounts</span> at banks with a large number of deposit accounts would owners likely need immediate or near-immediate access to funds after failure? \n \n • How difficult would it be for banks with a large number of deposit accounts to maintain current records on \n \n beneficial owners"},{"title":"Simplification of Deposit Insurance Rules","type":"Rule","abstract":"The FDIC is revising its deposit insurance regulations by adopting three substantive amendments and numerous technical amendments. The purpose of these amendments is to increase the public's understanding of the regulations through simplification. The substantive amendments in the final rule will: Relax the FDIC's recordkeeping requirements for certain agency or fiduciary accounts; create a six-month ``grace period'' following the death of a depositor for the restructuring of accounts; and clarify the insurance coverage of revocable trust accounts when an account is held by the depositor pursuant to a formal ``living trust'' agreement.","document_number":"98-11987","html_url":"https://www.federalregister.gov/documents/1998/05/11/98-11987/simplification-of-deposit-insurance-rules","pdf_url":"https://www.govinfo.gov/content/pkg/FR-1998-05-11/pdf/98-11987.pdf","public_inspection_pdf_url":null,"publication_date":"1998-05-11","agencies":[{"raw_name":"FEDERAL DEPOSIT INSURANCE CORPORATION","name":"Federal Deposit Insurance Corporation","id":164,"url":"https://www.federalregister.gov/agencies/federal-deposit-insurance-corporation","json_url":"https://www.federalregister.gov/api/v1/agencies/164","parent_id":null,"slug":"federal-deposit-insurance-corporation"}],"excerpts":"and such misrepresentation would \nincrease deposit insurance coverage, the FDIC may consider all \navailable evidence and pay claims for insured deposits on the basis of \nthe actual rather than the misrepresented ownership.\n    (2) Recognition of deposit ownership in <span class=\"match\">custodial accounts</span>. In the \ncase of custodial deposits, the interest of each beneficial owner may \nbe determined on a fractional or percentage basis. This may be \naccomplished in any manner which indicates that where the funds of an \nowner are commingled with other funds held in a custodial"},{"title":"Simplification of Deposit Insurance Rules","type":"Proposed Rule","abstract":"The FDIC is seeking comment on specific proposed revisions to the FDIC's deposit insurance regulations. The intended effect of the proposed rule is to simplify and revise the FDIC's regulations on deposit insurance by making several technical revisions and certain substantive revisions.","document_number":"97-11965","html_url":"https://www.federalregister.gov/documents/1997/05/14/97-11965/simplification-of-deposit-insurance-rules","pdf_url":"https://www.govinfo.gov/content/pkg/FR-1997-05-14/pdf/97-11965.pdf","public_inspection_pdf_url":null,"publication_date":"1997-05-14","agencies":[{"raw_name":"FEDERAL DEPOSIT INSURANCE CORPORATION","name":"Federal Deposit Insurance Corporation","id":164,"url":"https://www.federalregister.gov/agencies/federal-deposit-insurance-corporation","json_url":"https://www.federalregister.gov/api/v1/agencies/164","parent_id":null,"slug":"federal-deposit-insurance-corporation"}],"excerpts":"Custodian \nor Conservator\n    This is the current Sec. 330.6. The language of the section has \nbeen modified slightly. The provision on mortgage servicing accounts \nhas been clarified to indicate that such accounts are not entitled to \nseparate insurance, but are insured as <span class=\"match\">custodial accounts</span> under the \ngeneral rules of the section. The provision on annuity contract \naccounts has been moved to a new, separate Sec. 330.8.\nSection 330.8--Annuity Contract Accounts\n    This is a new section comprised of the provisions in current \nSec. 330.6(f). Funds in such"}]}