The Federal Reserve proposed some changes to Regulation D this week that will be of interest to those reclassifying their deposits. While the proposed rule changes do make a few tweaks, I will only focus on those relevant to Deposit Reclassification.
The Fed is actually trying to make life a little easier for FI’s by changing some of the wording relating to the Six-Three area of Reg D. In the past, the regulation has limited "convenient" transactions to only 6 per cycle, with check and debit card transaction to only 3. The new proposed rule would change to wording to continue to allow for 6 transactions and eliminate the other "3" limits.
There were also a few changes related to pass-through accounts and their legality in certain situations, but that’s getting a little down in the weeds. Long story short, these proposed changes do not directly impact an FI’s ability to reclassify their deposits.
Here are the new proposed rules from the Fed. By the way, I can’t stand reading regulations, but unfortunately, I’m getting pretty good at it and somebody’s got to do it!
2 comments for this entry ↓
1 Mike Templeton // Feb 15, 2008 at 9:59 am
Here is a post on the same subject over at the NAFCU blog: http://nafcucomplianceblog.typepad.com/nafcu_weblog/2008/02/fed-proposes-ch.html
He’s got a few additional links on the topic as well.
2 Anthony Demangone // Mar 26, 2008 at 1:24 pm
Good post. The word on the street is that this will pass through with no problem. No one, and I mean NO ONE will object!
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