The Federal Deposit Insurance Corporation (FDIC) has announced a 45-day extension of the public comment period for its proposed rule on recordkeeping for custodial accounts. The move comes as the FDIC seeks to address risks associated with third-party arrangements and protect depositors, aiming to bolster public confidence in insured deposits.
Originally set to expire on December 2, 2024, the new deadline for submitting comments is January 16, 2025. The proposed rule focuses on strengthening recordkeeping requirements for bank deposits received from third-party non-bank companies that accept these deposits on behalf of consumers and businesses.
Under the proposal, FDIC-insured banks holding certain custodial accounts would be required to maintain accurate account records to determine individual owners of funds. This includes daily reconciliation of accounts for each owner. Additionally, if a bank uses a third party to maintain records, these requirements apply.
The FDIC also proposed that banks’ primary federal supervisor oversee compliance with this rule and have enforcement authority to compel compliance in case of non-compliance by the banks.
Public comments are invited on all aspects of the proposal. Interested parties can submit their feedback through official channels established by the FDIC.
This extension reflects the FDIC’s commitment to thorough consideration of public opinion before finalizing rules that could have significant implications for the banking industry and consumers alike.
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