Description
Understand how a bank or broker should navigate some of the most common pitfalls in applying FDIC regulations to your business.Almost 2 trillion of customer funds are currently maintained in deposit accounts at FDICinsured banks that are offered by and held through registered brokerdealers and banks that act as deposit brokers. These brokered deposits are, on one hand, a core investment and savings product for retail investors and other customers of financial services firms, and, on the other, a significant source of funding for banks, which can access a nationwide capital market by attracting or tapping into brokered deposits. A year ago, the FDIC made the most farreaching changes to the definition of deposit broker since its brokered deposit regulations were adopted in 1992. These amendments, among many other changes, expand existing exceptions to the deposit broker definition and create several new exceptions. In this course, you will get an overview of the new brokered deposit regulations, learn guidance the FDIC staff has provided about them, and understand how a bank or broker should navigate some of the most common pitfalls in applying these regulations to your business.
Date: 2022-02-28 Start Time: End Time:
Learning Objectives
Background: The Brokered Deposit Market
• Definitions and Statutory Exemptions
• Discussion of Brokered Deposits Markets (CDs/Bank Liquidity/Sweeps)
• Consequences of Brokered Deposits (Call Reports/LCR)
Longstanding Issues in the Brokered Deposit Regulatory Regime
• Brief History (Emergence of Definition; FDICs Evolution and Studies)
• Common Issues Encountered:
• Pass-Through Insurance
• General Securities Laws Issues/Structure
• SEC Sweep Guidelines
New Regulations
• Summary of Rules and Requirements, With a Focus on Key Practice Points
• Notice Requirement for 25% and Facilitating Payments Exceptions
• Matchmaking
• Assets Under Administration and Business Line Definitions
• FDIC De-Emphasis on Fees
• Other New PPE Exceptions
• Exclusive Deposit Placement Arrangements
• Other Issues
• New FAQ Guidance
• A Year on, Tension Between the Final Rule and Subsequent FDIC Staff Interpretation of the Rule
Trends and the Future
• Fintech Products/Neobanks
• In-House Broker Sweep Programs
• Increase in Interest Rates = Return of CDs?
• Stablecoins
CLE (Please check the Detailed Credit Information page for states that have already been approved) ,Additional credit may be available upon request. Contact Lorman at 866-352-9540 for further information.
Nathan Brownback-Seward & Kissel LLP, Casey Jennings – Seward & Kissel LLP
