FDIC Withdraws Three Proposed Rules & Prior Approval of a Fourth

Recently, the FDIC announced its intention to withdraw three proposed rules regarding its regulatory oversight obligations, and its prior approval of a rule originally approved in 2024 and authorized for publication in the Federal Register regarding incentive-based compensation arrangements.

The first withdrawn rule, 12 CFR 364, originally published in October 2023, would have established a number of prescriptive and process-oriented standards and guidelines for corporate governance for FDIC-institutions holding at least $10 billion in consolidated assets. The second withdrawn rule as originally proposed in August 2024, 12 CFR 337.6, would have expanded the two-prong definition of what constitutes “brokered deposits,” reversing much of the framework of the FDIC’s definition of a brokered deposit, and thereby expanding the definition. The third withdrawn rule, also proposed in August 2024, 12 CFR 303, would have amended the Change in Bank Control Act (CBCA) filing procedures for noticing changes in the voting securities of a depository institution subject to FDIC oversight.

The last rule, previously approved, would have limited the ability for certain financial institutions to establish and maintain incentive-based compensation arrangements for individuals, if such arrangements could lead to material financial harm to the institution.

Aside from noticing its withdrawal of these proposals, the FDIC has provided no additional information regarding its next steps on rulemaking.