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4000 - Advisory Opinions

Question regarding whether a Company that Designs Deposit Products is Considered a Deposit Broker--Part I


June 6, 2014

Christopher L. Hencke, Councel

Dear ****:

The FDIC is in receipt of your letter dated May 30, 2014, in which you described the following modifications to the [rewards checking account] program:

1.  [The Company] will remove any listing of participating FDIC-insured depository institutions ("IDIs") from [the Company's website]. Also, [the Company] will remove any details about accounts at particular IDIs. Finally, [the Company] will remove the account-opening feature.

2.  [The Company] will amend its agreements with client IDIs so that the [rewards checking account] program will not include "Success Fees." Such fees will be replaced by "Rewards Servicing Fees," which will be associated with [the Company's] rewards platform, and not with the [rewards checking account] marketing program.

By making these two modifications, [the Company] would cease to be engaged in "facilitating the placement of deposits." Therefore, the FDIC would cease to view [the Company] as a "deposit broker." After the modifications have been effected, and after the FDIC has confirmed the modifications, the FDIC will inform its examiners and the other federal and state banking supervisors that the deposits will no longer be considered "brokered deposits." If you have any questions, please contact me at (202) 898--8839.

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