Skip to main content
U.S. flag
An official website of the United States government
Dot gov
The .gov means it’s official. 
Federal government websites often end in .gov or .mil. Before sharing sensitive information, make sure you’re on a federal government site.
Https
The site is secure. 
The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely.
INACTIVE
This page is no longer active. Its content has expired or been rescinded by the FDIC.

Year 2000 Fiduciary Services Guidance

Fiduciary / Asset Management
August 31, 1998

TO: CHIEF EXECUTIVE OFFICER
SUBJECT: Interagency Guidance on Fiduciary Services and Year 2000 Readiness

The Federal Financial Institutions Examination Council (FFIEC) has issued the attached statement to alert financial institutions to the potential risks associated with fiduciary services and the Year 2000 date change. The interagency statement identifies areas of potential risk and recommended actions to manage those risks.

The Federal Deposit Insurance Corporation (FDIC) expects financial institutions that offer fiduciary services to conduct a review of those services to identify potential liabilities. Examination staff will evaluate the review process as part of an institution's upcoming Phase II on-site assessment to ensure the institution has taken appropriate action to manage identified exposure.

Management is encouraged to actively utilize the services of its internal audit process and external audit programs. A well-coordinated review and reporting process should substantially lessen the risk that problems will go undetected.

The FDIC and state banking authorities will continue to review the efforts of all FDIC-supervised banks to become Year 2000 ready. An institution's failure to appropriately address Year 2000 readiness problems may result in supervisory action, including formal and informal enforcement actions, denials of applications filed pursuant to the Federal Deposit Insurance Act, civil money penalties, reductions in the institution's management component or composite ratings, and increased risk-related premiums.

The attached interagency statement and related information on Year 2000 issues are available on the Internet via the World Wide Web at /news/financial-institution-letters/ or http://www.ffiec.gov .

Nicholas J. Ketcha Jr.
Director
Attachment: FFIEC Interagency Statement

Distribution: FDIC-Supervised Banks (Commercial and Savings)

NOTE: Paper copies of FDIC financial institution letters may be obtained through the FDIC's Public Information Center, 801 17th Street, NW, Room 100, Washington, DC 20434 (800-276-6003 or (703) 562-2200).


Last Updated: August 31, 1998