FRB requests public comment on guidelines to evaluate requests for joint accounts…
December 20, 2016 / Source: FRB
The Federal Reserve Board on Monday requested comment on proposed guidelines that would be used to evaluate requests for joint accounts at Federal Reserve Banks. The accounts are intended to facilitate settlement between depository institutions participating in U.S. payment systems.
The Federal Reserve Banks typically permit a single master account per eligible depository institution. In limited cases and for specific purposes, the Reserve Banks have in the past opened joint accounts held for the benefit of multiple depository institutions, which are managed by an agent on behalf of those depository institutions. In light of ongoing developments to improve the U.S. payment system, including the Federal Reserve's Strategies for Improving the U.S. Payment System efforts, the Board anticipates interest by industry participants in establishing joint accounts to facilitate settlement.
The Board proposes to establish guidelines to broadly outline considerations for evaluating joint account requests. Requests would be evaluated on a case-by-case basis, and more specific considerations and information necessary to evaluate a particular request would likely be required based on the complexity of the arrangement and other factors.
Comments on the proposed guidelines are requested within 60 days of publication in the Federal Register, which is expected shortly.
Federal Register Notice (PDF)
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