FDIC consumer compliance exam manual updated to cover sweep account disclosures

A new section on sweep account disclosures was added this month to the Consumer Compliance Examination Manual (CEM) published by the Federal Deposit Insurance Corp. (FDIC), the agency said in an email Tuesday.

The new section, Disclosure Requirements for Sweep Accounts (X-6.1), includes examination procedures for FDIC Part 360.8(e), which requires consumer disclosures for sweep account transactions to inform whether the swept funds are deposits, the agency said.

The CEM provides supervisory information to FDIC examination staff that conduct consumer compliance examinations, Community Reinvestment Act (CRA) performance evaluations, and other supervisory activities. It includes supervisory policies and examination procedures for evaluating financial institutions’ compliance with federal consumer protection laws and regulations and, the agency notes, can be used by financial institutions as a source of information about the exam process.

FDIC Consumer Compliance Exam Manual