On December 15, 2020, the Board of Directors of the Federal Deposit Insurance Corporation (“FDIC”) voted 3–1 to approve a final rule that significantly revises and clarifies the regulatory framework applicable to brokered deposits, under which less-than-well-capitalized insured depository institutions are generally prohibited from accepting funds obtained, directly or indirectly, from a deposit broker.  The final rule represents the culmination of a long process, including an advance notice of proposed rulemaking issued in December 2018 and a notice of proposed rulemaking issued in December 2019, to modernize the FDIC’s brokered deposit regulations, and adopts a number of significant changes relative to the proposal.  The final rule becomes effective April 1, 2021, but the full compliance date is delayed until January 1, 2022.

Click here to read our Six Things to Know about the FDIC’s final brokered deposits rule.