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Inactive Financial Institution Letters
May 28, 1996
|TO:|| CHIEF EXECUTIVE OFFICER
AND COMPLIANCE OFFICER
|SUBJECT:|| Final Rule and Commentary Implementing
Fund Transfer Act and Request for Comment on Proposed
Amendments to Regulation E
| The Federal Reserve Board on May 2, 1996, issued a final
rule to amend Regulation E, which implements the Electronic
Fund Transfer Act (Act), and published final revisions to
its official staff commentary on the final rule. The amendments
followed the Federal Reserve Board's review of Regulation
E under its Regulatory Planning and Review Program.
Substantive amendments to Regulation E include changes to existing Act exemptions involving securities and commodities transfers. Under the final rule, transfers involving unregulated commodities or securities, such as municipal securities, that are made through regulated brokers or dealers (or futures commission merchants) are exempt from the Act. The amendments also expand the scope of exemption coverage for small institutions to help reduce their compliance burden. The small institution exemption has been increased from $25 million to $100 million.
Final revisions to the official staff commentary on Regulation E include changing the question and answer format of the draft commentary to a narrative form, and inserting explanatory text.
In addition to issuing a final rule on Regulation E on May 2, 1996, the Board published a proposed rule to amend Regulation E in three other areas: electronic communications, error resolution for new accounts, and stored-value products. Comments on the proposed rule must be received by August 1, 1996.
For further information about the Electronic Fund Transfer Act and Regulation E, please contact Federal Reserve Board staff at (202) 452-2412 or (202) 452-3667.
Distribution: FDIC-Supervised Banks (Commercial and Savings)
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