To our clients and friends:
On December 12, 2019, the Federal Deposit Insurance Corporation (the “FDIC”) issued a notice of proposed rulemaking (the “Proposed Rule”) to modernize certain aspects of the FDIC’s brokered deposit regulatory framework so that the classification of a brokered deposit appropriately reflects technological changes in the banking industry. The Proposed Rule would create a framework for how the FDIC would analyze certain prongs of the definition of a “deposit broker” under Section 29 of the Federal Deposit Insurance Act and establish an application and reporting process for fintech and other third-party entities to ensure their exemption from being classified as deposit brokers.
Our Alert, which summarizes the key provisions of the Proposed Rule, is available here.