FDIC Board sets July 16 meeting; final rules on joint deposit accounts, timely deposit insurance determination on agenda, with securitization safe harbor proposal

A final rule on joint deposit accounts is one of three regulations under consideration for a meeting Tuesday (July 16) of the board of the federal insurer of bank deposits.

The Federal Deposit Insurance Corp. (FDIC) Board announced its meeting (and agenda) Wednesday. Discussion agenda items include:

  • Memorandum and resolution re: Final Rule on Joint Deposit Accounts.
  • Memorandum and resolution re: Final Rule to Amend 12 C.F.R. Part 370, “Recordkeeping for Timely Deposit Insurance Determination.”
  • Memorandum and resolution re: Notice of Proposed Rulemaking – Proposed Amendment to Securitization Safe Harbor Rule.

The meeting is scheduled to get underway at 10 a.m.

As proposed in March, the rule on joint deposit accounts would provide an alternative method to satisfy the “signature card” requirement. Under the proposal, the “signature card” requirement could be satisfied by information contained in the deposit account records of the insured depository institution establishing co-ownership of the deposit account, such as evidence that the institution has issued a mechanism for accessing the account to each co-owner or evidence of usage of the deposit account by each co-owner.

The recordkeeping rule (proposed in April) is aimed at making an earlier version of the rule less burdensome for financial institutions (a view reached by the agency after comments from the industry and others). Under the proposal, certain institutions would have an option to extend the compliance date for a part of the regulation (part 370). The agency also proposed: simplifying the process for requesting exception from the rule’s requirements; amending the scope of certain provisions; and making technical amendments.

“The proposed amendments are likely to reduce compliance burdens for covered institutions while still ensuring that covered institutions implement the recordkeeping and IT system capabilities needed by the FDIC to make a timely deposit insurance determination for an IDI [insured depository institution] of such size and scale,” the agency wrote in the proposal.

FDIC Sunshine Act Meeting, July 16