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Notice Requirements for Sweep Accounts

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Question: 
We are looking to revise our daily disclosure notice to our Sweep account customers. Are there guidelines/samples available in some reference? I am having a difficult time finding the notice requirements.
Answer: 

Answer by Sonja Kriegsmann: Information about sweep disclosures can be found in the FDIC final rule relating to Processing of Deposit Accounts in the Event of an Insured Depository Institution Failure. The discussion on sweep accounts and disclosures is at the end of the final rule. Here is a link to the FIL which includes the final rule as an attachment.

Answer: 

Answer by John Burnett: The daily disclosure is addressed by a different FDIC regulation (for FDIC-supervised banks). 12 CFR Part 344, "Recordkeeping and Confirmation Requirements for Securities Transactions," calls for a notice for each securities transaction, and would apply if you're sweeping into repurchase agreements involving securities, for example.

There are similar requirements imposed by the federal supervisory regulators for other banks.

If your sweeps are into some other form of asset, the controlling regulation may be a different one.

First published on BankersOnline.com 7/1/13

First published on 07/01/2013

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