FDICIA

Question for seasoned bankers - We're working on risk assessment and had "FDICIA/control assessment" listed under the committee responsibilities. My internal auditor asked if this applied to us. Forgive my ignorance, but are there parts of FDICIA that don't apply to certain size banks? I assumed it all applied to everyone. Any help? Thanks.

As far as I know, FDICIA only applies to banks with asset size of 1 billion or greater (used to be 500M)

diff anon, I thought it still applied to banks with $500 million or greater in assets. $1 billion has been proposed and appears likely in the near future.

Here's the FDIC reg:

http://www.fdic.gov/regulations/laws/rules/2000-8500.html

The comment period is over and awaiting the final ruling.

This question was asked in my webinar last week. I also haven't heard that anything was final, or when it would be. Sometimes there is a fast track, and sometimes it is total back burner.

The FDIC Board met yesterday and passed this proposed rule change. It will be effective 30 days after it is published in the Federal Register.

So does this mean that we will not have to do control testing and attestation this year. I have heard 2 different scenarios, 1 that we (the bank) will still have to test and attest to the FDIC that controls are in place and working and that our external CPA firm will not have to give an opinion and 2 that we do not have to test and attest. Anyone know what it will be?

I am waiting to hear back from our external CPA firm for confirmation, but my understanding would be your scenario #1.

Anon, if you are not subject to SOX, the change will mean that while you are still required to maintain a control environment, and while the FDIC guidance on the internal audit function will still be operative, you will not need to employee a CPA firm to give an opinion.

If you are subject to SOX, then this doesn't do much for you.

Does anyone have a link to what the FDIC board passed? I've seen discussion of the contents, but haven't been able to find it. Or, has it not been published yet??

To date I have not seen it published in the Federal Register. I first saw the news about its approval in the ABA Daily Newsbytes dated 11/9/05.

Here is a copy of the final rule, but I have not seen it in the FR yet either:

Part 363

A link to the final rule is in today's Federal Register.