SDBA eNews: June 5, 2014

In This Issue

Preventing Elder Financial Abuse Video and Toolkit

The Senior Housing Crime Prevention Foundation (SHCPF) has produced the Preventing Elder Financial Abuse Video Toolkit for the banking industry.

The video gives banks the ability to educate people on how to look for signs of elder financial abuse and how to prevent it. The toolkit includes a 30-minute video, customized companion handouts filled with important information, and a customized press release to let the community know the information the bank has to offer.

The new tool is an added value for bank participation in the SHCPF program, and all bank partners will receive a copy. For a small fee, those not part of the program can pre-order the toolkit to be shipped on Aug. 1. Learn more.

OCC Releases Q3 CRA Exam Schedule

The OCC on Monday released its third-quarter Community Reinvestment Act examination schedule, covering July through September. View the schedule.

SDBA Taxation Equality Awareness Campaign


Learn more and get involved.

Upcoming Events

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Sponsorship Opportunity

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Contact Alisa DeMers, SDBA, at 800. 726.7322 or via email.

NDBA/SDBA 2014 Annual Convention Kicks Off on Sunday

The NDBA/SDBA 2014 Annual Convention begins on Sunday with a backstage networking party at which bankers and business partners can reconnect.

This year's event, June 8-10 at Ramada Plaza & Suites in Fargo, celebrates how Dakota bankers are rock stars in their communities.

The SDBA Office will be closed June 9-11 as staff will be in Fargo, and will reopen Thursday, June 12.

 See the full agenda and register to attend.

Agencies to Review Outdated, Unnecessary Regulations

The Federal Reserve, FDIC and OCC on Wednesday requested comments on bank regulations that are outdated, unnecessary or burdensome. The review -- conducted under the Paperwork Reduction Act -- will cover rules on applications and reporting; powers and activities; and international operations.

Specifically, the agencies asked that comments address any need for statutory change, changes in the underlying purpose of the regulations, the utility of different regulatory approaches, effects on competition, the burden of reporting requirements, and effects on institutions by size and charter type, among other issues.

Comments are due 90 days after publication in the Federal Register. Read the request for comment.

Visa Limits Fees, Simplifies Disclosures for Prepaid Cards

Visa on Tuesday announced a new set of standards for its prepaid card program that will limit fees and simplify disclosures.

The new requirements call for a variety of day-to-day fees to be replaced by a flat monthly charge. This charge would replace per-use fees for overdrafts, inactivity, customer service, in-network ATM withdrawals, balance inquiries, PIN or signature transactions and cash bank.

Visa prepaid cards will also be required to disclose charges on their packaging, using a standard disclosure developed by the Pew Charitable Trusts. Chase Bank previously said it would use the Pew format for its prepaid product. Visa’s action comes as the Consumer Financial Protection Bureau is expected this month to propose rules on prepaid cards. Read more.

ABA, ABIA Support Private Flood Insurance Bill

ABA and its American Bankers Insurance Association subsidiary on Monday wrote to Congress to support legislation intended to increase the availability of private flood insurance. The companion bills -- S. 2381 and H.R. 4558 -- would build on affordability-related reforms to the Biggert-Waters flood insurance law passed earlier this year.

“Providing consumers with alternatives to the National Flood Insurance Program and driving down flood insurance prices through greater competition is one way to ensure greater protection for consumers against flood damages in the mortgage markets; it is also a significant contribution to the goal of returning the NFIP to more robust fiscal health,” ABA and ABIA said. Read the letter.

ABA Seeks Relief on Rule Requiring Unbundling of Trustee Fees

ABA last week requested relief from the IRS under its final Section 67(e) rule -- commonly referred to as the trustee fee “unbundling” rule -- that provides guidance on the tax deductibility of costs incurred by estates or non-grantor trusts.

Among other things, under the final rule, banks and trust companies that charge a “bundled” fee to act as trustee or executor must “unbundle” for tax purposes the portion of that fee allocable to investment management services. Because the final rule goes into effect for tax years starting on or after May 9, 2014, the rule would appear to apply immediately to any non-grantor trust created after May 8, as well as to an estate of a decedent who dies after May 8.

Given the difficulty in complying with the new tax rule, ABA asked that the IRS delay the effective date until tax years starting on or after Jan. 1, 2015. ABA also sought guidance on the deductibility of certain tax preparation fees. Read the comment letter.

Conservation Compliance Guidelines in New Farm Bill

The Agricultural Act of 2014, the new Farm Bill, continues the requirement that producers adhere to conservation compliance guidelines in order to be eligible for most programs administered by USDA’s Farm Service Agency (FSA) and the Natural Resources Conservation Service (NRCS).

This includes the new price and revenue protection programs, the Conservation Reserve Program (CRP), the Livestock Disaster Assistance Programs and Marketing Assistance Loans implemented by FSA. It also includes conservation programs like the Environmental Quality Incentives Program (EQIP) and the Conservation Stewardship Program (CSP) administered by NRCS.

More information.