The Federal Reserve Board released final guidelines last week that will be used to evaluate requests for joint accounts at Federal Reserve Banks.
Joint accounts are intended to facilitate settlement between depository institutions participating in private-sector payment systems.
Under the Federal Reserve Act (FRA), the Federal Reserve banks have the authority to open accounts for member banks and other eligible depository institutions. Joint accounts are considered those where the rights and liabilities are shared among multiple depository institution account-holders. They have not, in the past, been available as a standard account option, but in limited cases, the Reserve Banks have opened such accounts for specific purposes
The final guidelines will provide consistency and transparency with respect to the evaluation of future joint account requests, given continued innovation in the U.S. payment system and the likelihood that there may be broader interest in such joint account arrangements going forward.
The final guidelines broadly outline considerations for evaluating joint account requests. Requests will be evaluated on a case-by-case basis, and more specific considerations and information necessary to evaluate a particular request will likely be required based on the complexity of the arrangement and other factors, the Fed stated.
The new guidelines will go into effect upon publication in the Federal Register.