7. If a third party wants to rely upon a designated exception that requires a notice submission (e.g., for placing 25% or less of its customer’s assets under administration at IDIs), when may it and the IDI that is receiving the deposits begin to rely on the exception?
The FDIC has established an interim electronic process for the receipt of notices that is accessible through the new Brokered Deposits section of the FDIC’s Bankers Resource Center webpage. The requirements for a notice are also included as part of the notice filing instructions. A notice that is submitted through the electronic process will be acknowledged immediately upon receipt via a return email. Entities may begin relying upon the primary purpose exception immediately after receipt of the return email acknowledgement, and may continue to rely on the primary purpose exception unless the FDIC notifies the filer that it is not eligible for the primary purpose exception.”
The FDIC provides additional guidance on the Q&A page regarding its formula to be used to calculate assets under administration for the 25% test, as well as guidance for other notice and disclosure requirements to obtain and maintain exempt status under the PPE. We note that there is an extended compliance date of January 1, 2022, to comply with the Rule for institutions that have relied on previous staff opinions.
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