![]() For example, if a customer of a deposit broker is promised by the “agent” that he or she will earn 3% on his or her deposit when the IDI is paying only 2%, the “agent” would not be an agent but a debtor with an independent obligation to pay 3%. ![]() The creation of a debtor/creditor relationship may occur if the purported agent has changed the terms of the IDI’s deposit contract, such as the terms relating to maturity dates or interest rates. ![]() The first requirement above will not be satisfied if the purported agent or the custodian has entered into a debtor/creditor relationship with the purported owner as opposed to an agent/principal relationship. The records of the IDI, the fiduciary or a third party must indicate both the identities of the principals as well as the ownership interest in the deposit.The IDI’s account records must indicate the agency nature of the account (e.g., XYZ Company as Custodian, XYZ For the benefit of (FBO), Jane Doe UTMA John Smith, Jr.).The agreement between the third party establishing the account and the principal.To confirm the actual ownership of the deposit funds, the FDIC may review: Funds must be in fact owned by the principal and not by the third party who set up the account (i.e., the fiduciary or custodian who is placing the funds).Requirements for Fiduciary Accountsĭeposits held by a fiduciary on behalf of one or more principals are insured on a pass-through basis as the deposits of the principal (the actual owner) to the same extent as if the deposits were deposited directly by the principal, provided all of the following three requirements are met: ![]() For a fiduciary account, assuming the requirements discussed below are met, coverage is provided as though the actual owner opened the account at the IDI. In other words, assuming Lisa has other single ownership accounts at AnyTown Bank, she does not receive separate coverage simply because the brokerage firm opened one of the accounts. In this scenario, Lisa Johnson is the owner of the funds and her account would be added with any other single accounts she has at AnyTown Bank and insured as her single account for up to $250,000. For example, ABC Brokerage Firm established a single account for Lisa Johnson at AnyTown Bank. The deposit insurance coverage for such accounts depends on the actual ownership capacity in which the principal or owner holds the funds. ![]()
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