A final rule by the federal bank deposit insurer giving covered depository institutions an option to seek more time to comply with a rule on recordkeeping for timely deposit insurance determination is set to publish Tuesday in the Federal Register.
The revised rule, adopted July 16 by the Federal Deposit Insurance Corp. (FDIC) Board with Board Member (and former chairman) Martin Gruenberg dissenting, gives covered institutions an option to seek a one-year extension of the rule’s April 1, 2020, compliance deadline.
The FDIC adopted the rule in 2016 to facilitate prompt payment of FDIC-insured deposits when large insured depository institutions (IDIs) – those with 2 million or more deposit accounts – fail. As finalized, and effective this Oct. 1, the final rule:
- includes an optional one-year extension of the compliance date upon notification to the FDIC;
- provides clarifications regarding compliance certification, and the effect of a change in law or a merger transaction on compliance;
- enables IDIs that are not covered institutions to voluntarily become covered institutions under part 370 and be released from the provisional hold and standard data format requirements of § 360.9;
- revises the actions that must be taken by a covered institution with respect to deposit accounts with transactional features that are insured on a pass-through basis;
- amends the alternative recordkeeping requirements for certain types of deposit relationships;
- clarifies the process for requesting exception from the rule’s requirements, provide for published notice of the FDIC’s responses, and provide that certain exceptions may be deemed granted; and
- makes corrections and technical and conforming changes.