Regulatory Alerts2021-02-03 | 2020-28454Removal of Transferred OTS Regulations Regarding Subordinate Organizations of State Savings Associations
The Federal Deposit Insurance Corporation (FDIC) issued a final rule rescinding and removing 12 CFR part 390, subpart O, which contained transferred Office of Thrift Supervision regulations governing subordinate organizations of state savings associations. The FDIC determined that these rules are substantially duplicative of existing provisions in 12 CFR part 362, allowing state savings associations and their subsidiaries to rely on the latter for definitions, corporate separateness requirements, prior notice procedures, and securities issuance without altering supervisory outcomes. The rule takes effect on March 5, 2021, streamlining regulatory compliance by eliminating redundant requirements while maintaining safety and soundness standards.