US Federal Deposit Insurance Corporation Proposes Rule Regarding Recordkeeping Requirements For Qualified Financial Contracts

On December 13, 2016, the FDIC released a notice of proposed rulemaking that proposed amendments to its rule regarding recordkeeping requirements for qualified financial contracts (QFCs) (12 CFR Part 371). The rule currently requires an insured depository institution in troubled condition to maintain detailed recordkeeping requirements about its QFCs which would ultimately make it easier for the FDIC to transfer, disaffirm or repudiate such QFCs in the event of an FDIC receivership. The proposed rule would align Part 371 more closely with the QFC recordkeeping requirements adopted by the Secretary of the Treasury in connection with the Orderly Liquidation Authority under Title II of Dodd-Frank. The proposed rule would expand the scope of records required to be maintained under Part 371 and update the...