Title: Brokered Deposit Affiliate-Subsidiary Modernization Act of 2022
Policy area: Finance and Financial Sector

Summary:
Brokered Deposit Affiliate-Subsidiary Modernization Act of 2022
This bill excludes affiliates and subsidiaries of an insured depository institution from certain limitations applicable to brokered deposits. (Brokered deposits are a type of deposit accepted by an institution from a third-party deposit broker for investment purposes. Institutions that accept brokered deposits are subject to additional regulatory requirements, including those related to liquidity.)
The bill also expands the definition of an employee of an insured depository institution, thereby exempting these individuals from treatment as a deposit broker. Specifically, the bill includes as an employee (1) an individual who receives compensation in any form from an insured depository institution or from an affiliate or subsidiary, and (2) a registered representative of a broker or dealer that is an affiliate or subsidiary of an insured depository institution.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 5346 Introduced in Senate (IS)]

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117th CONGRESS
  2d Session
                                S. 5346

 To amend the Federal Deposit Insurance Act to exclude affiliates and 
subsidiaries of insured depository institutions from the definition of 
                deposit broker, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           December 21, 2022

   Mr. Moran introduced the following bill; which was read twice and 
    referred to the Committee on Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
 To amend the Federal Deposit Insurance Act to exclude affiliates and 
subsidiaries of insured depository institutions from the definition of 
                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. SHORT TITLE.

    This Act may be cited as the ``Brokered Deposit Affiliate-
Subsidiary Modernization Act of 2022''.

SEC. 2. BROKERED DEPOSITS.

    Section 29(g) of the Federal Deposit Insurance Act (12 U.S.C. 
1831f(g)) is amended--
            (1) in paragraph (2)--
                    (A) in subparagraph (A), by inserting ``or any 
                affiliate or subsidiary of that insured depository 
                institution,'' after ``an insured depository 
                institution,''; and
                    (B) in subparagraph (B), by inserting ``or any 
                affiliate or subsidiary of the insured depository 
                institution,'' after ``an insured depository 
                institution,''; and
            (2) by striking paragraph (4) and inserting the following:
            ``(4) Employee.--For purposes of this subsection, the term 
        `employee'--
                    ``(A) means an individual who receives compensation 
                in any form from--
                            ``(i) an insured depository institution; or
                            ``(ii) any affiliate or subsidiary of an 
                        insured depository institution; and
                    ``(B) includes a registered representative of a 
                broker or dealer that is an affiliate or subsidiary of 
                an insured depository institution.''.
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