Reporting and Recordkeeping Requirements for Brokered Deposits

Forms and Documents

Document Name	Status
SPST-0099 Reporting and RK Requirements for Brokered Deposits NPR Feb 2020.docx Supporting Statement A	2020-02-10

IC Document Collections

IC ID	Document Title	Status
31862	Application for Waiver of Prohibition on Acceptance of Brokered Deposits	Modified
239887	Reporting for Primary Purpose Exception - Other (Ongoing)	New
239886	Reporting for Primary Purpose Exception - Enabling Transactions (Ongoing)	New
239885	Reporting for Primary Purpose Exception - Less than 25% of Customer Assets Under Management (Ongoing)	New
239884	Application for Primary Purpose Exception - Other (Implementation)	New
239883	Application for Primary Purpose Exception - Enabling Transactions (Implementation)	New
239882	Application for Primary Purpose Exception - Less than 25% of Customer Assets Under Management (Implementation)	New

ICR Details

OMB Control No: 3064-0099	ICR Reference No: 202002-3064-001
Status: PreApproved	Previous ICR Reference No: 201702-3064-010
Agency/Subagency: FDIC	Agency Tracking No:
Title: Reporting and Recordkeeping Requirements for Brokered Deposits
Type of Information Collection: Revision of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular
OIRA Conclusion Action: Preapproved	Conclusion Date: 05/19/2020
	Date Received in OIRA: 02/10/2020
Terms of Clearance: Pre-approval contingent upon no substantive changes to this collection after adoption of the final rule. Otherwise this collection must be re-submitted to OMB for review.

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	05/31/2023	36 Months From Approved	01/31/2021
Responses	25,218	0	30
Time Burden (Hours)	23,042	0	180
Cost Burden (Dollars)	0	0	0

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Abstract: Section 29 of the Federal Deposit Insurance Act (FDI Act) restricts the acceptance of deposits by insured depository institutions from a "deposit broker. Well capitalized insured depository institutions are not restricted from accepting deposits from a deposit broker. An "adequately capitalized" insured depository institution may accept deposits from a deposit broker only if it has received a waiver from the FDIC. A waiver may be granted by the FDIC "upon a finding that the acceptance of such deposits does not constitute an unsafe or unsound practice" with respect to that institution. An "undercapitalized" depository institution is prohibited from accepting deposits from a deposit broker. Section 337.6 of the FDIC’s Rules and Regulations implements and closely tracks the statutory text of Section 29, particularly with respect to the definition of “deposit broker” and its exceptions. Section 29 of the FDI Act does not directly define a “brokered deposit,” rather, it defines a “deposit broker” for purposes of the restrictions. This definition is subject to nine statutory exceptions. The proposed rule would define certain terms for purposes of the brokered deposit restrictions, including the term “facilitation” and “primary purpose.” The proposed rule would also establish an application and reporting process for persons that seek to meet the primary purpose exception or for insured depository institutions that seek to accept non-brokered deposits from persons that meet the primary purpose exception.

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Authorizing Statute(s): US Code: 12 USC 1831f Name of Law: Federal Deposit Insurance Act
  

Citations for New Statutory Requirements: None

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
3064-AE94	Proposed rulemaking	85 FR 7453	02/10/2020

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Federal Register Notices & Comments

Did the Agency receive public comments on this ICR? No

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Number of Information Collection (IC) in this ICR: 7

IC Title	Form No.	Form Name
Application for Waiver of Prohibition on Acceptance of Brokered Deposits
Application for Primary Purpose Exception - Less than 25% of Customer Assets Under Management (Implementation)
Application for Primary Purpose Exception - Enabling Transactions (Implementation)
Application for Primary Purpose Exception - Other (Implementation)
Reporting for Primary Purpose Exception - Less than 25% of Customer Assets Under Management (Ongoing)
Reporting for Primary Purpose Exception - Enabling Transactions (Ongoing)
Reporting for Primary Purpose Exception - Other (Ongoing)

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ICR Summary of Burden

	Total Preapproved	Previously Approved	Change Due to New Statute	Change Due to Agency Discretion	Change Due to Adjustment in Estimate	Change Due to Potential Violation of the PRA
Annual Number of Responses	25,218	30	0	25,209	-21	0
Annual Time Burden (Hours)	23,042	180	0	22,988	-126	0
Annual Cost Burden (Dollars)	0	0	0	0	0	0

Burden increases because of Program Change due to Agency Discretion: Yes

Burden Increase Due to: Changing Regulations

Burden decreases because of Program Change due to Agency Discretion: No

Burden Reduction Due to:

Short Statement: FDIC is revising its regulation implementing Section 29 of the Federal Deposit Insurance Act to define certain terms for purposes of the brokered deposit restrictions, including the term “facilitation” and “primary purpose.” The proposed rule would also establish an application and reporting process for persons that seek to meet the primary purpose exception or for insured depository institutions that seek to accept non-brokered deposits from persons that meet the primary purpose exception.

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Annual Cost to Federal Government: $0

Does this IC contain surveys, censuses, or employ statistical methods? No

Does this ICR request any personally identifiable information (see OMB Circular No. A-130 for an explanation of this term)? Please consult with your agency's privacy program when making this determination.     No

Does this ICR include a form that requires a Privacy Act Statement (see 5 U.S.C. §552a(e)(3))? Please consult with your agency's privacy program when making this determination.     No

Is this ICR related to the Affordable Care Act [Pub. L. 111-148 & 111-152]? No

Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]? No

Is this ICR related to the American Recovery and Reinvestment Act of 2009 (ARRA)? No

Is this ICR related to the Pandemic Response? No

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Common Form ICR:  No

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On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).

The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:

(a) It is necessary for the proper performance of agency functions;

(b) It avoids unnecessary duplication;

(c) It reduces burden on small entities;

(d) It uses plain, coherent, and unambiguous language that is understandable to respondents;

(e) Its implementation will be consistent and compatible with current reporting and recordkeeping practices;

(f) It indicates the retention periods for recordkeeping requirements;

(g) It informs respondents of the information called for under 5 CFR 1320.8 (b)(3) about:

(i) Why the information is being collected;

(ii) Use of information;

(iii) Burden estimate;

(iv) Nature of response (voluntary, required for a benefit, or mandatory);

(v) Nature and extent of confidentiality; and

(vi) Need to display currently valid OMB control number;

(h) It was developed by an office that has planned and allocated resources for the efficient and effective management and use of the information to be collected.

(i) It uses effective and efficient statistical survey methodology (if applicable); and

(j) It makes appropriate use of information technology.

If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.

Certification Date: 02/10/2020

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