Deeper Inside
The FDIC is extending the comment period of its proposed recordkeeping rule on third-party custodial accounts until November 21, 2024, to further improve recordkeeping requirements for banks managing third-party custodial accounts, ensuring timely deposit insurance determinations.
The Federal Deposit Insurance Corporation is extending its public comment period for its proposed rule that would further shore up recordkeeping requirements at banks offering third-party custodial accounts with transaction features. The previous deadline for comments was October 22, 2024. The new date is November 21, 2024, for stakeholder review and comments on the proposed changes.
This rule, that would be introduced at this time, is to further strengthen the FDIC in its ability to quickly determine deposit insurance coverage in a case of bank failure, especially managed by non-bank third-party companies for consumers. Such a move resulted from cases where consumers were forced to wait a long time in accessing their money because such third-party custodians were given the task of record-keeping inadequately.
To ensure that it captures all the feedback surrounding such regulations, the stakes, which include banks, fintech companies, and consumer advocacy groups, are thereby sought to make their comments by the new deadline.
