On November 15, 2016, the Federal Deposit Insurance Corporation (FDIC) adopted a final rule requiring an insured depository institution (IDI) with two million or more deposit accounts (covered institution) to adopt a records systems capable of quickly calculating insured deposit account information in the event of the covered institution's failure. The FDIC would use this information to determine deposit insurance coverage within 24 hours of the covered institutions failure. The final rules were adopted with slight variations from a proposed rule released in February 2016.

The final rule requires that each covered institution configure and maintain an information technology (IT) system capable of calculating insured and uninsured deposit account information, in accordance with the FDIC's deposit insurance rules set forth in 12 CFR part 330. The covered institution's IT system must contain certain identifying information and account details about ownership rights and capacities. The records will be maintained in the following four output files:

Each covered institution must certify annually with the FDIC that it is in compliance with the final rule.

In a deviation from the propose rule, and in light of comments received, the final rule has a bifurcated data and recordkeeping requirement, allowing for alternative compliance for certain types of accounts, as discussed below.

The final rule's recordkeeping requirement mandates that a covered institution ensure that its deposit records contain the information needed for the covered institution's IT system to quickly make deposit insurance determinations. Such information is generally already maintained in the covered institutions' ordinary course of operations, and, as outlined in the final rule, includes information for:

A covered institution can use alternative recordkeeping, however, for certain types of deposit accounts for which the covered institution is not required to maintain the deposit account information under 12 CFR part 330, so long as the information retained allows the FDIC to promptly determine deposit insurance amounts. The alternative recordkeeping requirements apply to deposit accounts that would be insured on a "pass-through" basis, such as brokered deposits, and accounts for which the FDIC requires additional information to make an insurance amount determination.

If a covered institution maintains a deposit account with "transactional features" that employ an alternative recordkeeping system, then the covered institution is required to certify that the FDIC will receive the information needed to calculate deposit insurance within 24 hours of the appointment of the FDIC as receiver.

Under the final rule (and in accordance with recordkeeping standards of 12 CFR §§ 330.5 and 330.7), deposit records for certain types of accounts (including various types of "pass-through" deposit accounts) may be kept and maintained off-site with a third party, rather than at the covered institution.

The effective date for the final rule will be April 1, 2017. Covered institutions will have three years after the effective date to implement a compliant IT and recordkeeping system. Covered institutions can apply to the FDIC for an extension at the end of the three year compliance timeframe.