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Financial Institution Letters

Sweep Account Disclosure Requirements
Frequently Asked Questions
FIL-39-2009
July 6, 2009


Summary: On January 27, 2009, the FDIC finalized its rule "Processing of Deposit Accounts in the Event of an Insured Depository Institution Failure" (see FIL-9-2009). In addition to establishing practices for determining deposit and other account balances at a failed depository institution, the rule includes disclosure requirements for certain sweep accounts, effective July 1, 2009. In response to industry questions regarding the sweep account disclosure requirements, the FDIC has prepared the attached list of Frequently Asked Questions (FAQs).

Highlights:
The FAQs cover the following general categories of questions:

  • The types of sweep accounts covered by the disclosure requirements, as well as those that are excluded.
  • The type and nature of disclosures required by the rule.
  • The frequency of required sweep account disclosures.
  • The principles used by the FDIC to determine how swept funds will be treated in the event of failure.
  • The requirements for a properly structured repo sweep.

Distribution:
All Insured Depository Institutions

Suggested Routing:
Chief Executive Officer
Chief Operating Officer
Regulatory Compliance Officer

Related Topics:
Deposit Insurance Coverage
12 C.F.R. Part 330
Transaction Account Guarantee Program
12 C.F.R. Part 370

Attachment:
FAQs

Contact:
James Marino, Project Manager, Division of Resolutions and Receiverships,
at jmarino@fdic.gov or 202-898-7151;
or Joseph A. DiNuzzo, Counsel, Legal Division, at
jdinuzzo@fdic.gov or (202) 898-7349

Printable Format:
FIL-39-2009 - PDF (PDF Help)

Note:
FDIC financial institution letters (FILs) may be accessed from the FDIC's Web site at www.fdic.gov/news/news/financial/2009/index.html.

To receive FILs electronically, please visit http://www.fdic.gov/about/subscriptions/fil.html.

Paper copies of FDIC financial institution letters may be obtained through the FDIC's Public Information Center, 3501 Fairfax Drive, E-1002, Arlington, VA 22226 (1-877-275-3342 or 703-562- 2200).




Last Updated 7/6/2009 communications@fdic.gov