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4000 - Advisory Opinions


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

FDIC--15--03

December 18, 2014

Christopher L. Hencke, Councel

Dear ****:

In a letter dated September 23, 2014 ., you informed the FDIC that [the Company] will make certain modifications to its [rewards checking account] program. Specifically, [the Company] will take the following actions:

•  Update [the Company's] website to remove:

CheckmarkAll listings of banks offering the [rewards checking account] product;

CheckmarkAll details associated with [the Company's] offerings at client institutions; and

CheckmarkAll online account opening functionality;

•  Change the website's search function so that searches must be conducted through an external source not associated with [the Company] or [its website]; and

• Change the [fee] from a volume-based fee to a flat fee (i.e., a fee not based on volume of deposits).

By making and maintaining these modifications, [the Company] will cease to qualify as a "deposit broker" because it will no longer be engaged in "facilitating the placement of deposits." As a result, the deposits will cease to qualify as "brokered deposits." This conclusion has been communicated to the FDIC's regional staff and to the other federal and state bank regulators. Periodically, the FDIC examiners will review [the Company's] website to ensure that the modifications have remained in place. If you have any questions, please contact me at (202) 898--8839.


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