Highlights:
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Institutions that accept deposits with the intent of placing a portion of some
or all of these deposits must establish governing controls over this activity to
prevent customer confusion and ensure that all activities comply with deposit
insurance regulations.
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Some FDIC-insured depository institutions/affiliates have entered into
agreements with third-party affinity groups or trade associations (groups) to
collect and place customer deposits at FDIC-insured institutions and/or their
affiliates.
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Once collected, if an institution/ affiliate subsequently places these deposits
at other institutions/affiliates, the institution needs to adhere closely to the
FDIC rules governing the eligibility of these accounts for "pass-through"
deposit insurance coverage.
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Institutions should ensure that marketing materials, customer statements and
disclosures given to customers are accurate with respect to deposit insurance
coverage and reflect the terms and conditions of the arrangement between the
customer and the bank, as well as with the banks that receive customer funds.
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Institutions acting as agents in deposit collection and placement arrangements
should ensure customers are provided the deposit amount and the name of the
insured depository institution at which their deposits are ultimately placed.
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Because insurance coverage is available only if the interest rate and the
maturity date offered to the customer match the interest rate and maturity date
for funds placed with another bank, any differences in terms must be disclosed
to the customer at the inception of the arrangement, and in monthly statements,
and the customer must be informed that these changes may impact the deposit
insurance coverage of the account.
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All relevant personnel involved in collecting and placing deposits from any
third party should be trained on deposit insurance coverage requirements,
including requirements for pass-through insurance coverage.
Distribution:
FDIC-Insured Banks (Commercial and Savings)
Suggested
Routing:
Chief Executive Officer
Compliance Officer
Branch Manager
Related
Topics:
Deposit Insurance Rules
Consumer Laws
Third-Party Risk: Guidance for Managing Third-Party Risk (FIL-44-2008)
Third-Party Referrals Promising Above-Market Rates on Certificates of Deposits (FIL-32-2009)
Consumer Alert: FDIC suggests steps for consumers when placing deposits at
FDIC-insured banks through an agent, April 7, 2010
Attachment:
Guidance on Deposit Placement and Collection Activities at
FDIC-insured institutions and their Affiliates (PDF
Help)
Contact:
Karen Jones Currie, Senior Examination Specialist, at KCurrie@fdic.gov or (202) 898-3981; Joe
DiNuzzo, Supervisory Counsel, at JDiNuzzo@fdic.gov, or (202) 898-7349
Deposit Insurance Coverage: FDIC Call Center (toll-free) at 877-ASKFDIC
(877-275-3342); TDD: 800-925-4618
Printable
Format:
FIL-29-2010 - PDF (PDF Help)
Note:
FDIC financial institution letters (FILs) may be accessed from the FDIC's Web site
at www.fdic.gov/news/news/financial/2010/index.html.
To receive FILs electronically, please visit http://www.fdic.gov/about/subscriptions/fil.html.
Paper copies of FDIC financial institution letters may be obtained through the
FDIC's Public Information Center, 3501 Fairfax Drive, E-1002, Arlington, VA 22226
(1-877-275-3342 or 703-562-2200).
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