Comments due on FDIC proposal to amend Brokered Deposits rules

UPDATE: The FDIC has issued FIL-72-2024 announcing an extension of the comment period for this proposal. Comments are now due by November 21, 2024. The proposed revisions to the FDIC's regulations (12 CFR parts 303 and 337) would revise the “deposit broker” definition and would amend the analysis of the “primary purpose” exception to the “deposit broker” definition. The proposed rule would also amend two of the designated business relationships under the primary purpose exception and make changes to the notice and application process for the primary purpose exception. In addition, the proposed rule would clarify when an insured depository institution can regain status as an “agent institution” under the limited exception for a capped amount of reciprocal deposits. The proposal was published at 89 FR 68244 on 8/23/2024.