FDIC BOARD WAIVES CERTAIN BURDENSOME REQUIREMENTS RELATING TO CONFIRMATION OF BANK CUSTOMER SECURITIES TRANSACTIONS
FOR IMMEDIATE RELEASE
The FDIC Board of Directors said today it is waiving under
certain circumstances its requirement that state nonmember banks
carrying out securities transactions for customers disclose on the
confirmation statement or separately the portion of the fee charged
to customers represented by the amount of the bank's commission.
The waiver is effective immediately.
The Board took this action in order to eliminate a disparity
in the rules for state nonmember banks in relation to state member
and national banks, which are not required to provide the
Banks that sell securities through third parties typically
receive a portion of the load, or commission, but the amount may
vary depending on the monthly volume and type of sales that are
made. Many banks are unable to determine either in advance or
immediately after a trade the precise amount of their share of the
fee and, therefore, are unable to disclose this information to the
customer when the transaction is confirmed.
Even though the commission notice has been waived, bank
customers will continue to receive information about their
transactions under existing securities industry standards,
including disclosure of the total fees paid in connection with