Title: To amend the Federal Deposit Insurance Act to clarify the definition of a deposit broker, and for other purposes.
Policy area: Finance and Financial Sector

Summary:
This bill excludes certain affiliated broker-dealers that service retirement accounts and other similar plans from requirements applicable to brokered deposits.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2572 Introduced in House (IH)]

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116th CONGRESS
  1st Session
                                H. R. 2572

To amend the Federal Deposit Insurance Act to clarify the definition of 
               a deposit broker, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 8, 2019

Mr. Foster (for himself and Mr. Stivers) introduced the following bill; 
       which was referred to the Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
To amend the Federal Deposit Insurance Act to clarify the definition of 
               a deposit broker, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. AMENDMENT TO DEFINITION OF DEPOSIT BROKER.

    Section 29 of the Federal Deposit Insurance Act (12 U.S.C. 1831f) 
is amended--
            (1) in subsection (g)(2)--
                    (A) in subparagraph (H), by striking ``or'' at the 
                end;
                    (B) in subparagraph (I), by striking the period at 
                the end and inserting ``; or''; and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(J) an affiliate of the insured depository 
                institution, with respect to funds of an account or 
                benefit plan described in section 
                3(a)(4)(B)(viii)(I)(ee) of the Securities Exchange Act 
                of 1934 for which the insured depository institution 
                acts as custodian or directed trustee, to the extent 
                the affiliate provides brokerage, advisory, or agency 
                services to participants or beneficiaries of such 
                account or benefit plan and such services result in the 
                investment of the assets of such benefit plan or 
                account as deposits of such insured depository 
                institution.''; and
            (2) by adding at the end the following new subsection:
    ``(i) Consideration of Certain Information Shared With 
Affiliates.--Information regarding deposit accounts shared by an 
insured depository institution with its affiliates that is a 
communication described under section 603(d)(2)(ii) of the Fair Credit 
Reporting Act shall not be a factor in determining whether--
            ``(1) an affiliate of an insured depository institution, 
        including an individual employed by such affiliate, is 
        considered to be a deposit broker; or
            ``(2) deposits resulting from referrals of customers to an 
        affiliate of an insured depository institution are subject to 
        the restrictions of subsections (a) and (b).''.
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