The Federal Deposit Insurance Corporation (FDIC) is extending the public comment period for its proposed rule on recordkeeping for custodial accounts by 45 days.
On Sept. 17, the FDIC proposed a rule that would strengthen recordkeeping for bank deposits received from third party, non-bank companies accepting those deposits on behalf of consumers and businesses.
Under the proposed rule, FDIC-insured banks holding certain custodial accounts would be required to take certain steps to ensure accurate account records are maintained in order to determine the individual owner of the funds. This includes a requirement to reconcile the account for each individual owner on a daily basis.
These requirements apply if the bank uses a third party to maintain records. The proposal’s provisions also provide for oversight by the banks’ primary federal supervisor to review for compliance with this rule. In addition, it includes an enforcement authority to compel compliance if the bank does not meet these requirements.
The proposed rule initially provided a 60-day comment period from when it was published in the Federal Register. That means the comment period would end on Dec. 2. However, the 45-day extension approved by the FDIC this week moves the deadline for the comment period out to Jan. 16, 2025.