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#1496676 - 01/18/11 09:28 PM Re: New IOLTA ruling madukes
MyBrainHurts Offline
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#1496689 - 01/18/11 09:48 PM Re: New IOLTA ruling madukes
John Burnett Offline
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The FDIC has sent out a notice of a FINAL rule amending the notice requirements under §330.16. The final rule will be effective on publication in the Federal Register.

Institutions will have until 2/28/2011 to update their lobby and website notices to reflect the language required in amended §330.16.

The amended language has been posted to BOL's ABC Soup Regs site at http://www.bankersonline.com/regs/330/330.html
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#1496964 - 01/19/11 04:16 PM Re: New IOLTA ruling John Burnett
newbietoo Offline
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All our customers received the notice that was required by Dec. 31, 2010 because it was not an easy task to separate. Is it best to only target our IOLTA customers this time around with the updated notice (in addition to the lobby and website)?

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#1496966 - 01/19/11 04:19 PM Re: New IOLTA ruling newbietoo
Doug Hendrickson Offline
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Is it required that we send out an amended notice to the IOLTA holders? Since we couldn't separate NOW/IOLTA for statement purposes, we sent the original mailing to all deposit customers. I was planning on amending our signage and web-site, but was not going to do another mailing.
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#1496971 - 01/19/11 04:24 PM Re: New IOLTA ruling Doug Hendrickson
newbietoo Offline
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I think I read in the FDIC letter that it was 'encouraged' but not 'required' in terms of the notice to IOLTA holders. I was trying to get a feel for everyone else was going to do.

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#1496976 - 01/19/11 04:30 PM Re: New IOLTA ruling newbietoo
RR Joker Offline
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I'm curious too..are you or aren't you..I guess we need a poll!
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#1496986 - 01/19/11 04:38 PM Re: New IOLTA ruling RR Joker
MarieR Online
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We don't have many IOLTAs, so we are doing a target letter to inform them of the change in coverage.
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#1497041 - 01/19/11 05:24 PM Re: New IOLTA ruling MarieR
John Burnett Offline
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I think that most law firms and attorneys have received the word on IOLTA account coverage already, from their industry newsletters and targeting emails. But those same attorneys will probably also be glad you've gotten the word, so I recommend sending out something acknowledging the change, if you can target just your IOLTA customers.

But as noted above, it's your decision to make whether or not to send the notice to IOLTAs.
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#1497045 - 01/19/11 05:29 PM Re: New IOLTA ruling John Burnett
newbietoo Offline
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Thanks! I hope we don't run into the same issue we had before of not being able to segregate those specific accounts out.

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#1497291 - 01/19/11 09:41 PM Re: New IOLTA ruling newbietoo
susie spongehead Offline
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In my imagination
Does everyone plan to continue to post the old notice until your revised ones are completed? I called the FDIC Call Center and they were unable to provide any guidance regarding this. I was transferred to the Compliance Specialist for my region but she was unavailable. I'm waiting for a return call.

We are able to segregate IOLTAs so will send another notice via statement message.
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#1497336 - 01/19/11 10:33 PM Re: New IOLTA ruling susie spongehead
John Burnett Offline
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If by the "old" notice you mean the one that used to be required under §330.16(c)(1), you can leave that up until the revised ones are ready to post. In fact, you don't have to update the sign until 2/28/11.
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#1497630 - 01/20/11 04:17 PM Re: New IOLTA ruling John Burnett
DD Regs Offline
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Somewhere in the middle
From ABA's FAQ. Provided PDQ smirk

Q: To comply with the notification requirements in the November rules from the FDIC, in 2010 we notified our IOLTA account holders that they would not be eligible for the unlimited FDIC coverage as of January 1, 2011. Should we contact these IOLTA customers to let them know about the change and that IOLTA accounts are now fully insured?

A: The FDIC states that Insured Depository Institutions that already sent the notice required in the November final rule to IOLTA depositors are encouraged, but not required, to send a revised notice to such IOLTA depositors that their funds will be fully insured from December 31, 2010 through December 31, 2012. There is no prescribed wording for this notice.


And FWIW, we are doing a direct "Good News" letter to our IOLTA customers.
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#1498270 - 01/21/11 02:23 PM Re: New IOLTA ruling DD Regs
John Burnett Offline
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For what it's worth department: The FDIC has not yet updated its FAQ documents (last update was 12/20) at http://www.fdic.gov/deposit/deposits/unlimited/index.html or the information at http://www.fdic.gov/deposit/deposits/changes2.html.

At least they notified the industry of the revision to the regulation right after the 1/18/11 FDIC Board meeting.
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#1498335 - 01/21/11 02:53 PM Re: New IOLTA ruling John Burnett
DD Regs Offline
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Somewhere in the middle
Has it been recorded yet in the Federal Registry?

:snip:
EFFECTIVE DATE: The final rule is effective (insert date of publication in the Federal Register).
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#1498341 - 01/21/11 02:56 PM Re: New IOLTA ruling DD Regs
RR Joker Offline
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I haven't seen it, but since we have a "by" date, we are working on it now with 'no rush'.
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#1498405 - 01/21/11 03:45 PM Re: New IOLTA ruling RR Joker
John Burnett Offline
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No, it has not yet appeared in the Federal Register. And so far, it hasn't been scheduled for the 1/24 issue.
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#1498487 - 01/21/11 04:54 PM Re: New IOLTA ruling John Burnett
markp Offline
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.
Last edited by markp; 01/21/11 06:01 PM.
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#1498544 - 01/21/11 05:31 PM Re: New IOLTA ruling markp
newbietoo Offline
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Well, our website has been updated with the new notice. The updated lobby notices are on order ('old' ones are still in place for now) and we are going to target only our IOLTA customers via a statement insert for the end of the month. We know the deadline is 2/28, but we got caught in a bind at the end of last year just trying to stay in compliance so wanted to act on this as soon as it came down.

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#1498588 - 01/21/11 06:01 PM Re: New IOLTA ruling newbietoo
RR Joker Offline
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Since the FIL came out a bit ago...I don't see any need to wait...we just changed our website.
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#1498591 - 01/21/11 06:02 PM Re: New IOLTA ruling newbietoo
markp Offline
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Where can I order the new signage, I did not think the FDIC was issuing new signs as of yet?

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#1498592 - 01/21/11 06:02 PM Re: New IOLTA ruling markp
RR Joker Offline
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We did our own word doc.
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#1498656 - 01/21/11 06:49 PM Re: New IOLTA ruling RR Joker
newbietoo Offline
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We get our signs through a vendor, we just supplied the wording of the notice to them.

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#1498740 - 01/21/11 07:56 PM Re: New IOLTA ruling newbietoo
Reads Regs Offline
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The FDIC supplied this PDF version of the notice with today's FIL. http://www.fdic.gov/deposit/deposits/notice.pdf

When they first posted the FIL earlier today, the HTML version had a link to the PDF file but is was the wrong notice. The FDIC has now updated it with the correct wording so the link I provided should be good. I spoke with the FDIC today and they said they are working on updating the FAQs.
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#1498742 - 01/21/11 08:01 PM Re: New IOLTA ruling Reads Regs
ahkcompliance Offline
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I updated our website and also the lobby notices. We do our own notices in word. Marketing usually prints on card stock for me.

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#1498969 - 01/24/11 02:44 AM Re: New IOLTA ruling ahkcompliance
John Burnett Offline
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The FAQs were updated on Friday afternoon.
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