The Consumer Federation of America (CFA) released the following statement in response to the Federal Deposit Insurance Corporation’s (FDIC) proposed rule to strengthen record keeping of deposits received through third-party fintech relationships. The rule will require banks to ensure account records are maintained to determine the individual owner of funds and to perform reconciliation on a daily basis.

“CFA commends the FDIC for ensuring that banks keep accurate ledgers of their liabilities to consumers when banks place deposits from transaction accounts into custodial accounts,” said Adam Rust, director of financial services for the Consumer Federation of America, “‘Powered by a third-party fintech company’ has come to mean ‘if we fast fail, we may lose track of your deposits.’ It is past time to close this loophole. Trust in banking starts with knowing your deposits are safe.”