FDIC Provides Guidance on Compliance with Annual Independent Audits and Reporting Requirements

The FDIC provided guidance on compliance with FDIC Rule Part 363 ("Annual Independent Audits and Reporting Requirements") concerning insured depository institutions ("IDIs") with $500 million or more in consolidated total assets.

The guidance clarifies an interim final rule ("IFR") that allows IDIs to determine applicable compliance requirements under Part 363 based on the lesser of their consolidated total assets as of (i) December 31, 2019 or (ii) the beginning of their fiscal year ending in 2021.

The FDIC explained that the IFR was intended to relieve the cost of potentially temporary asset growth associated with pandemic-related programs, but does not provide relief to IDIs that experienced asset growth due to a merger or an acquisition transaction. The FDIC said it will consider matters on a case-by-case basis after a review of the facts and circumstances.