Brokered Deposit Affiliate-Subsidiary Modernization Act of 2022

Bill: 117-s-5346
Sponsor: full_name: Sen. Moran, Jerry [R-KS]
Introduced: 2022-12-21
Policy area: Finance and Financial Sector
Latest action: action_date: 2022-12-21
text: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Summaries:
action_date: 2022-12-21
action_desc: Introduced in Senate
text: <p><b>Brokered Deposit Affiliate-Subsidiary Modernization Act of 2022</b></p> <p>This bill excludes affiliates&nbsp;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.) </p> <p>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.</p>

tv_txt: II 117th CONGRESS 2d Session S. 5346 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.

1. Short title This Act may be cited as the Brokered Deposit Affiliate-Subsidiary Modernization Act of 2022 . 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. .