1. Short title
This Act may be cited as the “Brokered Deposit Affiliate-Subsidiary Modernization Act of 2019”.
Brokered Deposit Affiliate-Subsidiary Modernization Act of 2019
A BILL
To amend the Federal Deposit Insurance Act to exclude affiliates and subsidiaries of insured depository institutions from the definition of deposit broker, and for other purposes.
2. Brokered deposits
Section 29(g) of the Federal Deposit Insurance Act (12 U.S.C. 1831f(g)) is amended—
in paragraph (2)—
in subparagraph (A), by inserting “or any affiliate or subsidiary of that insured depository institution,” after “an insured depository institution,”; and
in subparagraph (B), by inserting “or any affiliate or subsidiary of the insured depository institution,” after “an insured depository institution,”; and
by striking paragraph (4) and inserting the following:
“(4) Employee—For purposes of this subsection, the term employee—
“(A) means an individual who receives compensation in any form from—
“(i) an insured depository institution; or
“(ii) any affiliate or subsidiary of an insured depository institution; and
“(B) includes a registered representative of a broker or dealer that is an affiliate or subsidiary of an insured depository institution.”