FDIC Updates RMS and Compliance Manuals

The Federal Deposit Insurance Corporation (FDIC) has been busy updating exam related materials, with multiple updates to the Risk Management Manual of Examination Policies (RMS Manual), specifically the sections on Capital and Examination Planning. The RMS Manual provides FDIC examiners information relating to examination activities and supervisory practices. It also promotes consistency in examination activities, which center on evaluating an institution’s capital, assets, management, earnings, liquidity, sensitivity to market risk, and adherence to laws and regulations. The RMS Manual had most recently been updated in March 2022 with updates to Section 1.1 Basic Examination Concepts and Guidelines and Section 4.1 Management.

The FDIC has also recently updated the Consumer Compliance Examination Manual, specifically the section related to the Telephone Consumer Protection Act (TCPA). The Consumer Compliance Examination Manual is a primary resource and reference tool for FDIC compliance examination staff to use in support of conducting Consumer Compliance and Community Reinvestment Act examinations and other supervisory activities. This manual incorporates examination policies, procedures, and guidance.  The Consumer Compliance Manual had most recently been updated in June 2022 with updates to II-1.1 Overview of Consumer Compliance Examinations, II-4.1 Pre-Exam Planning, II-5.1 Review and Analysis, II-6.1 Communicating Findings, II-8.1 Investigations and Visitations, and VII-1.1Unfair, Deceptive, and Abusive Practices.

Risk Management Manual of Examination Policies – Section 21.1 Examination Planning

In August 2022 the examiner instructions found RMS Manual Section 21.1 Examination Planning were enriched by providing an update on identifying those examination activities to be used for off-site review and those which are better suited for an on-site review. Further, these updates incorporated best practices for requesting examination information from financial institutions.

Risk Management Manual of Examination Policies – Section 2.1 Capital

In August 2022 Section 2.1 Capital of the RMS Manual was updated to include a new capital planning section and revised instructions for those institutions that have adopted the Current Expected Credit Losses (CECL) methodology or the Community Bank Leverage Ratio (CBLR) capital framework.

Consumer Compliance Exam Manual – Telephone Consumer Protection Act

In August 2022 the FDIC updated its Consumer Compliance Examination Manual to include revisions to Chapter VIII-5.1 Telephone Consumer Protection Act. This section was updated to conform to requirements for telemarketers a) to no longer allow the use of the “established business relationship” to avoid getting consumer consent, b) to obtain prior express written consent from consumers before making calls with an auto dialer or that contain a message made with a pre-recorded or artificial voice, and c) to require telemarketers to provide an automated, interactive “opt-out” mechanism during each of the calls made with an auto dialer or contain a message made with a pre-recorded or artificial voice, so that consumers can immediately tell the telemarketer to stop.