ICI submitted a joint comment letter to the @FDICgov expressing concern with its proposed rule that would require firms to provide the FDIC with advance notice if they acquire shares in banks above a certain threshold. Read more: https://t.co/DE7S60IXOo

— ICI (@ICI) October 30, 2024

Excerpts from the letter:

The Investment Company Institute and ICI Southwest appreciate the opportunity to submit this joint letter to the Federal Deposit Insurance Corporation (“FDIC”) on its proposal (the “Proposal”) to amend its regulations implementing the Change in Bank Control Act (“CBCA”). Our members include mutual funds, ETFs, and closed-end funds registered and regulated under the Investment Company Act of 1940 (“regulated funds”) that invest in equity securities, including those issued by publicly-traded banking organizations.

We are concerned that through the Proposal, the FDIC seeks unilaterally to upset the decadeslong interagency administration of the CBCA by the federal banking agencies (the “Agencies”). The FDIC would do so without any demonstration of need to alter long-established practices and in a manner that would impose costs and burdens for regulated funds, their investors and the US economy, and potentially restrict flows of capital to US banking organizations, all without discernable benefits.

The full letter can be read here

Source: ICI