FDIC Updates Resources for Revised Brokerage Deposit Regulations – Finance and Banking
United States: FDIC Updates Resources for Revised Brokerage Deposit Regulations
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The revisions to brokerage deposit regulations and interest rate restrictions came into effect on April 1, 2021. (Compliance with the rule is required by January 1, 2022.) For brokerage deposits, the final rule establishes a new framework for analyzing certain provisions of the definition of “deposit broker”, including “facilitation” and “primary purpose”. For interest rate restrictions, the FDIC changes its methodology for calculating the national rate, national rate cap, and local market rate cap. In addition, the FDIC explains when unmatured deposits are accepted and when unmatured deposits are solicited for the purposes of enforcing negotiated deposits and interest rate restrictions. The website has been updated to include a list of entities for which a primary purpose exception notice has been submitted.
In an update Faq Included on the webpage, the FDIC addressed (i) the extended compliance date, (ii) exclusive deposit placement agreements, (iii) the definition of deposit broker, (iv) the subject matter exception principal and (v) declaration.
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