On December 15, 2020, the Federal Deposit Insurance Corporation (FDIC) adopted a final rule that creates a new framework for analyzing certain provisions of the “deposit broker” definition, including “facilitating” and “primary purpose”. The new rule also establishes a transparent application process for persons that seek a “primary purpose exception” but do not meet one of the “designated exceptions”. In addition, the rule also covers interest rate restrictions for less than well capitalized insured depository institutions. The final rule took effect on April 1, 2021 with full compliance extended until January 1, 2022.
For more information, please view the Compliance Bulletin.