Understanding the FDIC’s Updated Brokered Deposit Rules


We will review and explain the recent changes to the FDIC’s brokered deposit rules. In an effort to modernize and accommodate fintech partnerships, the final rule establishes a new framework for designating an entity as a “deposit broker”. The final rule narrows the definition of “deposit broker.” It also designates certain business relationships and services that meet the rule’s “primary purpose exemption,” and does not require an application to the FDIC.

These designated exemptions include:

  • deposits where the agent has less than 25% of the total “assets under administration” for its customers;
  • health savings accounts;
  • deposits related to certain real estate and mortgage servicing transactions;
  • certain retirement funds;
  • and customer funds held for various regulatory, tax and other government purposes.

Tom Nelson
EVP, Chief Investment Officer, Management
Reich & Tang Deposit Solutions