FDIC Issues Final Rule for Changes in Control

The FDIC today issued a final rule amending filing requirements and processing procedures for notices filed under the Change in Bank Control Act. The rule consolidates and conforms the regulations of state nonmember banks, savings associations and certain parent companies, adds transparency to current FDIC practices and establishes consistency with other agencies’ regulations.

Under the rule, a person who has been approved to acquire control of a covered institution and who has maintained that control must file a second notice if that person’s ownership, control or power to vote will grow to 25 percent or more of any class of voting securities. The rule also outlines reporting requirements for stock loans held by foreign banks. The final rule takes effect Jan. 1.