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Acting to ease burdensome regulations, the FDIC today
approved a rule that clarifies securities recordkeeping and
confirmation requirements for state-chartered non-member banks.
The revised rule, which takes effect April 1, 1997, reorganizes and
clarifies Part 344 of the FDIC's rules and regulations, incorporates
significant interpretations and updates various provisions to reflect
market developments.
The Board action was another step in the FDIC's efforts to
streamline and update its regulations and written policies.
The rule exempts from the reporting and recordkeeping
requirements of Part 344 securities transactions executed through
registered broker/dealers under circumstances where the bank
customer has a written account agreement with the broker-dealer
and the broker-dealer arrangement is fully disclosed to the bank
customer. This amendment eliminates duplicate reporting
requirements imposed upon banks that enter into common
networking arrangements with broker-dealers.
The FDIC decided against including a proposed addition to
Part 344 which would have required some directors to report
certain of their personal securities transactions. Comments
received on this aspect of the proposal indicated uncertainty as to
the scope and application of the proposed rule. The proposal was
dropped in an effort to maintain uniformity with other regulators
and to avoid imposing unnecessary additional burdens on banks.
Instead, the FDIC will study further the issue of employee, officer,
and director disclosures in consultation with the other federal
banking regulators.
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Congress created the Federal Deposit Insurance Corporation in 1933 to
restore public confidence in the nation's banking system. The FDIC insures
deposits at the nation's 11,670 banks and savings associations and it
promotes the safety and soundness of these institutions by identifying,
monitoring and addressing risks to which they are exposed.
FDIC press releases and other documents are available on the Internet via
the World Wide Web at www.fdic.gov or through Gopher at
gopher.fdic.gov. They may also be obtained through the FDIC's Public
Information Center, 801 17th St. NW, Room 100, Washington, DC,
((703) 562-2200).
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