Notice of the FDIC's Response to Exception Requests Pursuant to Recordkeeping for Timely Deposit Insurance Determination, 9068-9070 [2021-02782]
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9068
Federal Register / Vol. 86, No. 27 / Thursday, February 11, 2021 / Notices
(3) the location of the device; and (4) the
date of initial operation. Otherwise, the
Commission permits providers to
develop their own registration systems
to facilitate provider control and
interference resolution, providers
should collect only such information
that is reasonably related to achieving
these dual goals. Wireless providers
may determine how to collect such
information and how to keep it up-todate. Section 90.219(d)(5)—This rule
requires operators of Part 90 Class B
signal boosters to register these devices
in a searchable on-line database that
will be maintained and operated by the
Wireless Telecommunications Bureau
via delegated authority from the
Commission. The Commission believes
this will be a valuable tool to resolve
interference should it occur.
Certification Requirements: Sections
20.3, 20.21(e)(2), 20.21(e)(8)(i)(G),
20.21(e)(9)(i)(H), 90.203—These rules,
in conjunction with the R&O, require
that signal booster manufacturers
demonstrate that they meet the new
technical specifications using the
existing and unchanged equipment
authorization application, including
submitting a technical document with
the application for FCC equipment
authorization that shows compliance of
all antennas, cables and/or coupling
devices with the requirements of
§ 20.21(e). The R&O further provides
that manufacturers must make certain
certifications when applying for device
certification. Manufacturers must
provide an explanation of all measures
taken to ensure that the technical
safeguards designed to inhibit harmful
interference and protect wireless
networks cannot be deactivated by the
user. The R&O requires that
manufacturers of Provider-Specific
Consumer Signal Boosters may only be
certificated with the consent of the
licensee so the manufacturer must
certify that it has obtained such consent
as part of the equipment certification
process. The R&O also requires that if a
manufacturer claims that a device will
not affect E911 communications, the
manufacturer must certify this claim
during the equipment certification
process. Note: The ‘‘application for
equipment’’ certification requirements
are met under OMB Control Number
3060–0057, FCC Form 731.
Antenna Kitting Documentation
Requirement: Sections 20.21(e)(8)(i)(G),
20.21(e)(9)(i)(H)—The rules require that
all consumer boosters must be sold with
user manuals specifying all antennas
and cables that meet the requirements of
this section. Part 90 Licensee Consent
Documentation Requirement: Section
90.219(b)(1)(i)—This rule requires that
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Jkt 253001
non-licensees seeking to operate part 90
signal boosters must obtain the express
consent of the licensee(s) of the
frequencies for which the device or
system is intended to amplify. The rules
further require that such consent must
be maintained in a recordable format
that can be presented to a FCC
representative or other relevant licensee
investigating interference.
Cross-reference to Other Rule Parts:
Sections 22.9, 24.9, and 27.9—
Operation of a consumer signal booster
under Parts 22, 24, and 27 of the
Commission’s rules must also comply
with section 20.21 of the Commission’s
rules, including all relevant information
collections.
Federal Communications Commission.
Marlene Dortch,
Secretary, Office of the Secretary.
[FR Doc. 2021–02771 Filed 2–10–21; 8:45 am]
BILLING CODE 6712–01–P
FEDERAL DEPOSIT INSURANCE
CORPORATION
Notice of the FDIC’s Response to
Exception Requests Pursuant to
Recordkeeping for Timely Deposit
Insurance Determination
Federal Deposit Insurance
Corporation (FDIC).
ACTION: Notice of the FDIC’s response to
exception requests pursuant to the
Recordkeeping for Timely Deposit
Insurance Determination rule.
AGENCY:
In accordance with its rule
regarding recordkeeping for timely
deposit insurance determination, the
FDIC is providing notice that it has
granted time-limited exception relief to
covered institutions from: The
information technology system and
recordkeeping requirements applicable
to certain formal revocable and
irrevocable trust accounts; the
information technology system
requirements, general recordkeeping
requirements, and alternative
recordkeeping requirements applicable
to certain deposit accounts for which
the covered institution must perform
data clean up to assign an appropriate
ownership right and capacity code to
the subject accounts and related system
updates; the information technology
system requirements and general
recordkeeping requirements to certain
internal (work-in-process) deposit
accounts for which the covered
institution’s information technology
system is not yet capable of calculating
deposit insurance within 24 hours after
the appointment of the FDIC as receiver;
SUMMARY:
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and the information technology system
requirements, general recordkeeping
requirements, and alternative
recordkeeping requirements for a
limited number of deposit accounts held
in the covered institution’s trust
department, which acts in an agency or
fiduciary capacity.
DATES: The FDIC’s grants of exception
relief were effective as of February 3,
2021.
FOR FURTHER INFORMATION CONTACT:
Benjamin Schneider, Section Chief,
Division of Complex Institution
Supervision and Resolution;
beschneider@fdic.gov; 917–320–2534.
SUPPLEMENTARY INFORMATION: The FDIC
granted two time-limited exception
requests to multiple covered institutions
and three time-limited exception
requests to a covered institution
pursuant to the FDIC’s rule entitled
‘‘Recordkeeping for Timely Deposit
Insurance Determination,’’ codified at
12 CFR part 370 (part 370).1 Part 370
generally requires covered institutions
to implement the information
technology system and recordkeeping
capabilities needed to quickly calculate
the amount of deposit insurance
coverage available for each deposit
account in the event of failure. Pursuant
to § 370.8(b)(1), one or more covered
institutions may submit a request in the
form of a letter to the FDIC for an
exception from one or more of the
requirements of part 370 if
circumstances exist that would make it
impracticable or overly burdensome to
meet those requirements. Pursuant to
§ 370.8(b)(3), a covered institution may
rely upon another covered institution’s
exception request which the FDIC has
previously granted by notifying the
FDIC that it will invoke relief from
certain part 370 requirements and
demonstrating that the covered
institution has substantially similar
facts and circumstances to those of the
covered institution that has already
received the FDIC’s approval. The
notification letter must also include the
information required under § 370.8(b)(1)
and cite the applicable notice published
pursuant to § 370.8(b)(2). Unless
informed otherwise by the FDIC within
120 days after the FDIC’s receipt of a
complete notification for exception, the
exception will be deemed granted
subject to the same conditions set forth
in the FDIC’s published notice.
These grants of relief will be subject
to ongoing FDIC review, analysis, and
verification during the FDIC’s routine
part 370 compliance tests. The FDIC
presumes each covered institution is
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CFR part 370.
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Federal Register / Vol. 86, No. 27 / Thursday, February 11, 2021 / Notices
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meeting all the requirements set forth in
the Rule unless relief has otherwise
been granted. These grants of relief may
be rescinded or modified upon:
Discovery of misrepresentation; material
change of circumstances or conditions
related to the subject accounts; or failure
to satisfy conditions applicable to each.
The following exceptions were granted
by the FDIC as of February 3, 2021.
I. Certain Formal Revocable and
Irrevocable Trust Accounts With
Transactional Features for Which the
Covered Institution Must Maintain a
Unique Identifier for a Grantor in its
Deposit Account Records
The FDIC granted time-limited
exception relief from the information
technology system requirements set
forth in § 370.3 and certain
recordkeeping requirements set forth in
§ 370.4(b)(2) of the rule to two covered
institutions for up to 18 months from
their compliance date. These covered
institutions requested exception relief in
order to review records, perform
customer outreach where necessary, and
update recordkeeping and information
technology systems in order to maintain
a unique identifier of a grantor in the
deposit account records for a limited
number of deposit accounts held in
connection with a formal revocable or
irrevocable trust that would be insured
as described in 12 CFR 330.10 or 12 CFR
330.13.
These covered institutions
represented that they had not
maintained a unique identifier (which
may be, but is not required to be, a
government issued identification
number such as a social security
number or tax identification number) for
a grantor of a formal trust with
transactional features in its records for
the subject accounts. The covered
institutions believe that they can obtain
the information needed to maintain a
unique identifier for such a grantor
through a review of trust-related
documents and customer outreach, but
that information technology system
updates are also necessary to ensure a
unique identifier for each grantor can be
maintained in deposit account records.
In connection with the FDIC’s grants
of relief, these covered institutions have
represented that they will maintain the
capability to place holds on the deposit
accounts subject to the exception in the
event of failure until a deposit insurance
determination can be made and place all
such accounts into the pending file of
its part 370 output files during the relief
period. As conditions of relief, these
covered institutions must submit a
status report to part370@fdic.gov at the
midpoint of the exception relief period
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and immediately bring to the FDIC’s
attention any change of circumstances
or conditions.
II. Certain Deposit Accounts for Which
the Covered Institution’s Information
Technology System Is Not Capable of
Completing Deposit Insurance
Calculation Process Because Additional
Time Is Required for Data Cleanup To
Assign an Ownership, Right and
Capacity Code and for Related System
Updates
The FDIC granted time-limited
exception relief from the information
technology system requirements set
forth in § 370.3, general recordkeeping
requirements set forth in § 370.4(a), and
alternative recordkeeping requirements
set forth in § 370.4(b) of the rule to a
covered institution for up to 12 months
from the granted relief date. The
covered institution requested exception
relief to perform data cleanup of
account records, make system updates,
and assign ownership, right and
capacity codes to a limited number of
various deposit accounts. These data
cleanup and system update efforts are
needed so that the covered institution’s
deposit account records and part 370compliant information technology
system capabilities can be used to
calculate deposit insurance for the
subject accounts.
The covered institution has identified
data quality issues that led to
inappropriate ownership, right and
capacity codes being assigned to various
deposit accounts. Data quality issues
included inappropriate ownership, right
and capacity codes being assigned to the
subject accounts due to system logic
misidentifying keywords in account
titles. For example, a single account
opened by ‘James Bond’ might be
assigned the public bond account
ownership right and capacity code of
PBA. In other instances, a limited
number of accounts were not assigned
an ownership right and capacity code
due to unclear account titling,
insufficient records, and general data
quality issues.
The covered institution requested
time-limited relief to review records,
assign the appropriate ownership right
and capacity code, and ensure its
systems can calculate deposit insurance
for the subject accounts. In addition, the
covered institution represented that it
will be able to identify the applicable
ownership right and capacity code upon
the completion of remediation efforts for
the majority of accounts.
In connection with the FDIC’s grant of
relief, the covered institution will
investigate the reason accounts were
placed into the pending file of the
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9069
covered institution’s part 370 output
files, review account records, write new
system logic to ensure the applicable
ownership right and capacity code is
applied to the subject accounts, and, in
the event of its failure, ensure that holds
can be placed on all deposit accounts
subject to this time-limited exception
relief until sufficient information is
obtained to enable calculation of deposit
insurance coverage. As conditions of
relief, the covered institution must
submit a status report to part370@
fdic.gov at the midpoint of the exception
relief period and immediately bring to
the FDIC’s attention any change of
circumstances or conditions.
III. A Limited Number of Internal
(Work-in-Process) Deposit Accounts for
Which the Covered Institution’s
Information Technology System Is Not
Capable of Completing Deposit
Insurance Calculation Process Within
24 Hours of Failure
The FDIC granted time-limited
exception relief from the information
technology requirements set forth in
§ 370.3 and general recordkeeping
requirements set forth in § 370.4(a) of
the rule to a covered institution for up
to 18 months from its compliance date
for certain internal (work-in-process)
accounts that the covered institution’s
information technology system cannot
calculate deposit insurance within 24
hours of failure. The covered institution
identified these internal accounts as
accounts utilized for functions such as
clearing, settlement, suspense or workin-process. Such accounts do not qualify
for alternative recordkeeping.
In connection with the FDIC’s grant of
relief, the covered institution described
the internal (work-in-process) accounts
in detail, including, account titling, the
number of accounts, account balances,
data and trends regarding transaction
settlement cycles, business-as-usual
processes in place, and zero-balance
accounts. The covered institution has
represented that it will place all such
accounts into the pending file of the
covered institution’s part 370 output
files; document procedures and
processes to upload the data into the
covered institution’s deposit insurance
calculation engine; and certify that the
covered institution can obtain
information from internal business lines
necessary to make a deposit insurance
determination as soon as possible after
appointment of the FDIC as receiver.
As conditions of relief, the covered
institution must submit a status report
to part370@fdic.gov at the midpoint of
the exception relief period setting forth
progress made towards rule compliance
for the subject accounts; provide
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annually data regarding the number of
and amount of deposits held in the
internal accounts covered by this
exception; provide a final copy of the
documentation that describes the
processes put in place to obtain
beneficial ownership information
necessary to make an insurance
determination for the subject accounts
as quickly as possible; confirm that the
covered institution currently has the
capability to restrict access to any or all
of the subject accounts if required; make
reasonable efforts, in the ordinary
course of upgrading its information
technology systems, to implement an
information technology solution that
would permit a deposit insurance
determination for the subject accounts
within 24 hours; and immediately bring
to the FDIC’s attention any change of
circumstances or conditions.
IV. A Limited Number of Deposit
Accounts for Which the Covered
Institution’s Trust Department Acts in
an Agency or Fiduciary Capacity
The FDIC granted time-limited
exception relief from the information
technology requirements set forth in
§ 370.3, general recordkeeping
requirements set forth in § 370.4(a), and
alternative recordkeeping requirements
set forth in § 370.4(b) of the rule for up
to 18 months from its compliance date
for a limited number of deposit accounts
for which its trust department acts in an
agency or fiduciary capacity. The
covered institution’s trust department 2
provides fiduciary and agency services
to corporations, retirement plans, and
individuals. These services include
safeguarding assets, making investment
decisions, or facilitating clients’
complex business transactions.
In performing such services, the trust
department opens deposit accounts that
hold funds from uninvested cash,
sweeps, or other transactions on behalf
of its customers. The account records for
the subject accounts, which the trust
department maintains on a separate
system of record, reflect that funds are
held by the covered institution’s trust
department as an agent or fiduciary for
its clients.
The covered institution must perform
system enhancements to assign an
ownership, right and capacity code to
the subject accounts and up the trust
department’s systems of record in order
to calculate deposit insurance. The
covered institution represented that it
2 The covered institution’s trust department is a
separate department that segregates its client data
from other parts of the Bank, uses a separate client
accounting system of record, observes trust
department rules that do not apply to banks, and
follows other distinct processes.
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16:39 Feb 10, 2021
Jkt 253001
must review account records to assign
an ownership, right and capacity code
to the subject accounts; input missing
information or data into the trust
department’s systems of record; enhance
information technology system logic;
develop new account opening
procedures at account onboarding; and
if necessary, amend trust agreements
and provide notices to third-party
recordkeepers for accounts that qualify
for alternative recordkeeping treatment
with transactional features.3
In connection with the FDIC’s grant of
relief, the covered institution will
ensure that, in the event of its failure,
holds can be placed on all deposit
accounts subject to this time-limited
exception relief until sufficient
information is obtained to enable
calculation of deposit insurance
coverage. As conditions of relief, the
covered institution must submit a status
report to part370@fdic.gov at the
midpoint of the exception relief period
and immediately bring to the FDIC’s
attention any change of circumstances
or conditions.
Federal Deposit Insurance Corporation.
Dated at Washington, DC, on February 5,
2021.
James P. Sheesley,
Assistant Executive Secretary.
[FR Doc. 2021–02782 Filed 2–10–21; 8:45 am]
BILLING CODE 6714–01–P
FEDERAL DEPOSIT INSURANCE
CORPORATION
Notice of the FDIC’s Response to
Exception Requests Pursuant to the
Recordkeeping for Timely Deposit
Insurance Determination Rule
Federal Deposit Insurance
Corporation (FDIC).
ACTION: Notice of the FDIC’s response to
exception requests pursuant to the
Recordkeeping for Timely Deposit
Insurance Determination rule.
AGENCY:
In accordance with its rule
regarding recordkeeping for timely
deposit insurance determination, the
FDIC is providing notice that it has
granted time-limited exception relief to
covered institutions until March 31,
2022, from information technology
system requirements and recordkeeping
requirements for principal and interest
payments held in mortgage servicing
accounts for which the covered
institutions act as servicers or subservicers. The recommended relief will
SUMMARY:
3 The requirements of § 370.4(b)(2)(ii) require the
Bank obtain grantor unique identification
information for accounts with transactional
features.
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Fmt 4703
Sfmt 4703
provide the covered institutions
additional time to remediate their
servicing platforms and internal
processing capabilities pending further
direction from the FDIC.
DATES: The FDIC’s grant of exception
relief was effective as of February 4,
2021.
FOR FURTHER INFORMATION CONTACT:
Benjamin Schneider, Section Chief,
Division of Complex Institution
Supervision and Resolution;
beschneider@fdic.gov; 917–320–2534.
SUPPLEMENTARY INFORMATION: The FDIC
granted time-limited exception relief to
multiple covered institutions and
pursuant to the FDIC’s rule entitled
‘‘Recordkeeping for Timely Deposit
Insurance Determination,’’ codified at
12 CFR part 370 (part 370).1 Part 370
generally requires covered institutions
to implement the information
technology system and recordkeeping
capabilities needed to quickly calculate
the amount of deposit insurance
coverage available for each deposit
account in the event of failure. Pursuant
to § 370.8(b)(1), one or more covered
institutions may submit a request in the
form of a letter to the FDIC for an
exception from one or more of the
requirements of part 370 if
circumstances exist that would make it
impracticable or overly burdensome to
meet those requirements. Pursuant to
§ 370.8(b)(3), a covered institution may
rely upon another covered institution’s
exception request which the FDIC has
previously granted by notifying the
FDIC that it will invoke relief from
certain part 370 requirements and
demonstrating that the covered
institution has substantially similar
facts and circumstances to those of the
covered institution that has already
received the FDIC’s approval. The
notification letter must also include the
information required under § 370.8(b)(1)
and cite the applicable notice published
pursuant to § 370.8(b)(2). Unless
informed otherwise by the FDIC within
120 days after the FDIC’s receipt of a
complete notification for exception, the
exception will be deemed granted
subject to the same conditions set forth
in the FDIC’s published notice.
This grant of relief will be subject to
ongoing FDIC review, analysis, and
verification during the FDIC’s routine
part 370 compliance tests. The FDIC
presumes each covered institution is
meeting all the requirements set forth in
the Rule unless relief has otherwise
been granted. This grant of relief may be
rescinded or modified upon: discovery
of misrepresentation; material change of
1 12
E:\FR\FM\11FEN1.SGM
CFR part 370.
11FEN1
]]>Agencies
[Federal Register Volume 86, Number 27 (Thursday, February 11, 2021)]
[Notices]
[Pages 9068-9070]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-02782]
=======================================================================
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FEDERAL DEPOSIT INSURANCE CORPORATION
Notice of the FDIC's Response to Exception Requests Pursuant to
Recordkeeping for Timely Deposit Insurance Determination
AGENCY: Federal Deposit Insurance Corporation (FDIC).
ACTION: Notice of the FDIC's response to exception requests pursuant to
the Recordkeeping for Timely Deposit Insurance Determination rule.
-----------------------------------------------------------------------
SUMMARY: In accordance with its rule regarding recordkeeping for timely
deposit insurance determination, the FDIC is providing notice that it
has granted time-limited exception relief to covered institutions from:
The information technology system and recordkeeping requirements
applicable to certain formal revocable and irrevocable trust accounts;
the information technology system requirements, general recordkeeping
requirements, and alternative recordkeeping requirements applicable to
certain deposit accounts for which the covered institution must perform
data clean up to assign an appropriate ownership right and capacity
code to the subject accounts and related system updates; the
information technology system requirements and general recordkeeping
requirements to certain internal (work-in-process) deposit accounts for
which the covered institution's information technology system is not
yet capable of calculating deposit insurance within 24 hours after the
appointment of the FDIC as receiver; and the information technology
system requirements, general recordkeeping requirements, and
alternative recordkeeping requirements for a limited number of deposit
accounts held in the covered institution's trust department, which acts
in an agency or fiduciary capacity.
DATES: The FDIC's grants of exception relief were effective as of
February 3, 2021.
FOR FURTHER INFORMATION CONTACT: Benjamin Schneider, Section Chief,
Division of Complex Institution Supervision and Resolution;
[email protected]; 917-320-2534.
SUPPLEMENTARY INFORMATION: The FDIC granted two time-limited exception
requests to multiple covered institutions and three time-limited
exception requests to a covered institution pursuant to the FDIC's rule
entitled ``Recordkeeping for Timely Deposit Insurance Determination,''
codified at 12 CFR part 370 (part 370).\1\ Part 370 generally requires
covered institutions to implement the information technology system and
recordkeeping capabilities needed to quickly calculate the amount of
deposit insurance coverage available for each deposit account in the
event of failure. Pursuant to Sec. 370.8(b)(1), one or more covered
institutions may submit a request in the form of a letter to the FDIC
for an exception from one or more of the requirements of part 370 if
circumstances exist that would make it impracticable or overly
burdensome to meet those requirements. Pursuant to Sec. 370.8(b)(3), a
covered institution may rely upon another covered institution's
exception request which the FDIC has previously granted by notifying
the FDIC that it will invoke relief from certain part 370 requirements
and demonstrating that the covered institution has substantially
similar facts and circumstances to those of the covered institution
that has already received the FDIC's approval. The notification letter
must also include the information required under Sec. 370.8(b)(1) and
cite the applicable notice published pursuant to Sec. 370.8(b)(2).
Unless informed otherwise by the FDIC within 120 days after the FDIC's
receipt of a complete notification for exception, the exception will be
deemed granted subject to the same conditions set forth in the FDIC's
published notice.
---------------------------------------------------------------------------
\1\ 12 CFR part 370.
---------------------------------------------------------------------------
These grants of relief will be subject to ongoing FDIC review,
analysis, and verification during the FDIC's routine part 370
compliance tests. The FDIC presumes each covered institution is
[[Page 9069]]
meeting all the requirements set forth in the Rule unless relief has
otherwise been granted. These grants of relief may be rescinded or
modified upon: Discovery of misrepresentation; material change of
circumstances or conditions related to the subject accounts; or failure
to satisfy conditions applicable to each. The following exceptions were
granted by the FDIC as of February 3, 2021.
I. Certain Formal Revocable and Irrevocable Trust Accounts With
Transactional Features for Which the Covered Institution Must Maintain
a Unique Identifier for a Grantor in its Deposit Account Records
The FDIC granted time-limited exception relief from the information
technology system requirements set forth in Sec. 370.3 and certain
recordkeeping requirements set forth in Sec. 370.4(b)(2) of the rule
to two covered institutions for up to 18 months from their compliance
date. These covered institutions requested exception relief in order to
review records, perform customer outreach where necessary, and update
recordkeeping and information technology systems in order to maintain a
unique identifier of a grantor in the deposit account records for a
limited number of deposit accounts held in connection with a formal
revocable or irrevocable trust that would be insured as described in 12
CFR 330.10 or 12 CFR 330.13.
These covered institutions represented that they had not maintained
a unique identifier (which may be, but is not required to be, a
government issued identification number such as a social security
number or tax identification number) for a grantor of a formal trust
with transactional features in its records for the subject accounts.
The covered institutions believe that they can obtain the information
needed to maintain a unique identifier for such a grantor through a
review of trust-related documents and customer outreach, but that
information technology system updates are also necessary to ensure a
unique identifier for each grantor can be maintained in deposit account
records.
In connection with the FDIC's grants of relief, these covered
institutions have represented that they will maintain the capability to
place holds on the deposit accounts subject to the exception in the
event of failure until a deposit insurance determination can be made
and place all such accounts into the pending file of its part 370
output files during the relief period. As conditions of relief, these
covered institutions must submit a status report to [email protected] at
the midpoint of the exception relief period and immediately bring to
the FDIC's attention any change of circumstances or conditions.
II. Certain Deposit Accounts for Which the Covered Institution's
Information Technology System Is Not Capable of Completing Deposit
Insurance Calculation Process Because Additional Time Is Required for
Data Cleanup To Assign an Ownership, Right and Capacity Code and for
Related System Updates
The FDIC granted time-limited exception relief from the information
technology system requirements set forth in Sec. 370.3, general
recordkeeping requirements set forth in Sec. 370.4(a), and alternative
recordkeeping requirements set forth in Sec. 370.4(b) of the rule to a
covered institution for up to 12 months from the granted relief date.
The covered institution requested exception relief to perform data
cleanup of account records, make system updates, and assign ownership,
right and capacity codes to a limited number of various deposit
accounts. These data cleanup and system update efforts are needed so
that the covered institution's deposit account records and part 370-
compliant information technology system capabilities can be used to
calculate deposit insurance for the subject accounts.
The covered institution has identified data quality issues that led
to inappropriate ownership, right and capacity codes being assigned to
various deposit accounts. Data quality issues included inappropriate
ownership, right and capacity codes being assigned to the subject
accounts due to system logic misidentifying keywords in account titles.
For example, a single account opened by `James Bond' might be assigned
the public bond account ownership right and capacity code of PBA. In
other instances, a limited number of accounts were not assigned an
ownership right and capacity code due to unclear account titling,
insufficient records, and general data quality issues.
The covered institution requested time-limited relief to review
records, assign the appropriate ownership right and capacity code, and
ensure its systems can calculate deposit insurance for the subject
accounts. In addition, the covered institution represented that it will
be able to identify the applicable ownership right and capacity code
upon the completion of remediation efforts for the majority of
accounts.
In connection with the FDIC's grant of relief, the covered
institution will investigate the reason accounts were placed into the
pending file of the covered institution's part 370 output files, review
account records, write new system logic to ensure the applicable
ownership right and capacity code is applied to the subject accounts,
and, in the event of its failure, ensure that holds can be placed on
all deposit accounts subject to this time-limited exception relief
until sufficient information is obtained to enable calculation of
deposit insurance coverage. As conditions of relief, the covered
institution must submit a status report to [email protected] at the
midpoint of the exception relief period and immediately bring to the
FDIC's attention any change of circumstances or conditions.
III. A Limited Number of Internal (Work-in-Process) Deposit Accounts
for Which the Covered Institution's Information Technology System Is
Not Capable of Completing Deposit Insurance Calculation Process Within
24 Hours of Failure
The FDIC granted time-limited exception relief from the information
technology requirements set forth in Sec. 370.3 and general
recordkeeping requirements set forth in Sec. 370.4(a) of the rule to a
covered institution for up to 18 months from its compliance date for
certain internal (work-in-process) accounts that the covered
institution's information technology system cannot calculate deposit
insurance within 24 hours of failure. The covered institution
identified these internal accounts as accounts utilized for functions
such as clearing, settlement, suspense or work-in-process. Such
accounts do not qualify for alternative recordkeeping.
In connection with the FDIC's grant of relief, the covered
institution described the internal (work-in-process) accounts in
detail, including, account titling, the number of accounts, account
balances, data and trends regarding transaction settlement cycles,
business-as-usual processes in place, and zero-balance accounts. The
covered institution has represented that it will place all such
accounts into the pending file of the covered institution's part 370
output files; document procedures and processes to upload the data into
the covered institution's deposit insurance calculation engine; and
certify that the covered institution can obtain information from
internal business lines necessary to make a deposit insurance
determination as soon as possible after appointment of the FDIC as
receiver.
As conditions of relief, the covered institution must submit a
status report to [email protected] at the midpoint of the exception
relief period setting forth progress made towards rule compliance for
the subject accounts; provide
[[Page 9070]]
annually data regarding the number of and amount of deposits held in
the internal accounts covered by this exception; provide a final copy
of the documentation that describes the processes put in place to
obtain beneficial ownership information necessary to make an insurance
determination for the subject accounts as quickly as possible; confirm
that the covered institution currently has the capability to restrict
access to any or all of the subject accounts if required; make
reasonable efforts, in the ordinary course of upgrading its information
technology systems, to implement an information technology solution
that would permit a deposit insurance determination for the subject
accounts within 24 hours; and immediately bring to the FDIC's attention
any change of circumstances or conditions.
IV. A Limited Number of Deposit Accounts for Which the Covered
Institution's Trust Department Acts in an Agency or Fiduciary Capacity
The FDIC granted time-limited exception relief from the information
technology requirements set forth in Sec. 370.3, general recordkeeping
requirements set forth in Sec. 370.4(a), and alternative recordkeeping
requirements set forth in Sec. 370.4(b) of the rule for up to 18
months from its compliance date for a limited number of deposit
accounts for which its trust department acts in an agency or fiduciary
capacity. The covered institution's trust department \2\ provides
fiduciary and agency services to corporations, retirement plans, and
individuals. These services include safeguarding assets, making
investment decisions, or facilitating clients' complex business
transactions.
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\2\ The covered institution's trust department is a separate
department that segregates its client data from other parts of the
Bank, uses a separate client accounting system of record, observes
trust department rules that do not apply to banks, and follows other
distinct processes.
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In performing such services, the trust department opens deposit
accounts that hold funds from uninvested cash, sweeps, or other
transactions on behalf of its customers. The account records for the
subject accounts, which the trust department maintains on a separate
system of record, reflect that funds are held by the covered
institution's trust department as an agent or fiduciary for its
clients.
The covered institution must perform system enhancements to assign
an ownership, right and capacity code to the subject accounts and up
the trust department's systems of record in order to calculate deposit
insurance. The covered institution represented that it must review
account records to assign an ownership, right and capacity code to the
subject accounts; input missing information or data into the trust
department's systems of record; enhance information technology system
logic; develop new account opening procedures at account onboarding;
and if necessary, amend trust agreements and provide notices to third-
party recordkeepers for accounts that qualify for alternative
recordkeeping treatment with transactional features.\3\
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\3\ The requirements of Sec. 370.4(b)(2)(ii) require the Bank
obtain grantor unique identification information for accounts with
transactional features.
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In connection with the FDIC's grant of relief, the covered
institution will ensure that, in the event of its failure, holds can be
placed on all deposit accounts subject to this time-limited exception
relief until sufficient information is obtained to enable calculation
of deposit insurance coverage. As conditions of relief, the covered
institution must submit a status report to [email protected] at the
midpoint of the exception relief period and immediately bring to the
FDIC's attention any change of circumstances or conditions.
Federal Deposit Insurance Corporation.
Dated at Washington, DC, on February 5, 2021.
James P. Sheesley,
Assistant Executive Secretary.
[FR Doc. 2021-02782 Filed 2-10-21; 8:45 am]
BILLING CODE 6714-01-P
