ICBA requests extension for comments on FDIC’s proposal on custodial accounts

ICBA and other groups asked for a 60-day extension to the comment period for the FDIC’s Notice of Proposed Rulemaking on Recordkeeping for Custodial Accounts, which would establish new recordkeeping requirements for “custodial deposit accounts with transactional features” at insured depository institutions.

Details: The groups said they appreciate the FDIC’s work to address the opportunities and risks posed by bank/fintech relationships, but the timing of this comment period overlaps with other proposed rule comment periods and requests for information on the same issue. ICBA agreed with FDIC Vice Chair Travis Hill, who said the FDIC should have waited to issue this proposal until first receiving comments from the RFI because the comments might help inform policymaking.