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FDIC STREAMLINES
RECORDKEEPING AND CONFIRMATION REQUIREMENTS
FOR IMMEDIATE RELEASE
PR-10-97 (2-25-97)
Media Contact:
Robert M. Garsson (202) 898-6993

Acting to ease burdensome regulations, the FDIC today approved a rule that clarifies securities recordkeeping and confirmation requirements for state-chartered non-member banks. The revised rule, which takes effect April 1, 1997, reorganizes and clarifies Part 344 of the FDIC's rules and regulations, incorporates significant interpretations and updates various provisions to reflect market developments.

The Board action was another step in the FDIC's efforts to streamline and update its regulations and written policies.

The rule exempts from the reporting and recordkeeping requirements of Part 344 securities transactions executed through registered broker/dealers under circumstances where the bank customer has a written account agreement with the broker-dealer and the broker-dealer arrangement is fully disclosed to the bank customer. This amendment eliminates duplicate reporting requirements imposed upon banks that enter into common networking arrangements with broker-dealers.

The FDIC decided against including a proposed addition to Part 344 which would have required some directors to report certain of their personal securities transactions. Comments received on this aspect of the proposal indicated uncertainty as to the scope and application of the proposed rule. The proposal was dropped in an effort to maintain uniformity with other regulators and to avoid imposing unnecessary additional burdens on banks. Instead, the FDIC will study further the issue of employee, officer, and director disclosures in consultation with the other federal banking regulators.

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Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation's banking system. The FDIC insures deposits at the nation's 11,670 banks and savings associations and it promotes the safety and soundness of these institutions by identifying, monitoring and addressing risks to which they are exposed.

FDIC press releases and other documents are available on the Internet via the World Wide Web at www.fdic.gov or through Gopher at gopher.fdic.gov. They may also be obtained through the FDIC's Public Information Center, 801 17th St. NW, Room 100, Washington, DC, ((703) 562-2200).

Last Updated 07/14/1999 communications@fdic.gov