Financial Institution Letter

Retail Foreign Exchange Transactions

FIL-36-2011

May 12, 2011




Summary:

The FDIC is issuing a Notice of Proposed Rulemaking (NPR) that would impose requirements on insured depository institutions (IDIs) supervised by the FDIC that engage in certain retail foreign currency transactions with retail customers. The NPR is being issued pursuant to section 742(c)(2) of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The FDIC requests public comment on the NPR generally, including regarding whether the proposal contains all appropriate consumer protections. Comments will be solicited on this NPR for 30 days after publication in the Federal Register.

Statement of Applicability to Institutions with Total Assets under $ 1 Billion: The FDIC believes no FDIC-supervised banks in this size category are affected by the proposed rule; since the proposal does not cover traditional spot and forward contracts, only institutions planning to engage in foreign currency futures, options, or rolling spot contracts would be affected.


Distribution:

FDIC-Supervised Banks (Commercial and Savings)

Complete Financial Institution Letter: http://www.fdic.gov/news/news/financial/2011/fil11036.html

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