Agency updates list of ‘primary purpose exceptions’ to brokered deposits rule

A list of entities for which a “primary purpose exception notice” has been submitted under brokered deposits rules is available under an updated resources page on the website of the federal insurer of bank deposits.

In a financial institution letter (FIL-48-2021) Tuesday, the Federal Deposit Insurance Corp. (FDIC) announced the updated website page on its banker resource center on brokered deposits. The page also includes, the agency said, an updated question-and-answer document addressing questions received about the brokered deposits rule.

Under the rules, adopted late last year by the FDIC Board, a “primary purpose” exception will apply when, with respect to a particular business line, the primary purpose of the agent’s or nominee’s business relationship with its customers is not the placement of funds with depository institutions. The list designates the business relationships that meet the primary purpose exception under the rule.

The overall rule, according to the FDIC, is designed to establish bright-line standards for determining whether an entity meets the statutory definition of “deposit broker” and to identify business relationships (or “designated exceptions”) that automatically meet the “primary purpose exception.”

FDIC FIL-48-2021Updates to Public Information on Brokered Deposits

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