The FDIC notified covered insured depository institutions that it amended the deposit insurance coverage rules for certain trust accounts and mortgage servicing accounts, and that covered institutions must prepare to update their deposit insurance coverage calculations in light of the amendments. The notification was published in the Federal Register.
The FDIC explained that amended Rule 370 ("Recordkeeping for timely deposit insurance determination"), approved by the FDIC in January 2022, requires each covered institution to implement a system that is able to calculate the amount of deposit insurance coverage available for each deposit account in the event of failure (see previous coverage). Pursuant to FDIC Rule 370.10(d) ("Compliance"), the FDIC is required to establish a reasonable timeframe for covered institutions to follow the implementation of rules that will affect the availability of deposit insurance calculations.
Institutions will not be in violation of the amended rule as long as they are prepared to update their systems by the effective date of April 1, 2024.
Primary Sources
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.