Amendments to Operating Circulars Nos. 6 & 7
To All Depository Institutions in the Second Federal Reserve District:
The Federal Reserve Board recently rescinded the Fedwire* Third-Party Access Policy. Accordingly, the provisions addressing third-party access arrangements currently in Appendix C of Operating Circular No. 6 (Funds Transfers Through Fedwire) have been removed. Instead, a new section 18 has been added to Operating Circular No. 6 and incorporated into Operating Circular No. 7 (Book-Entry Securities Account Maintenance and Transfer Services, which describes the legal relationship between a depository institution, a third-party service provider, and the Reserve Banks. A depository institution wishing to use a third-party service provider for funds or securities transfers, as well as the service provider, continue to be required to execute an agreement acknowledging the existence of the third-party access arrangement and agreeing to the terms of the appropriate operating circular.
The rescission of the Fedwire Third-Party Access Policy has no effect on the permissibility of Fedwire third-party outsourcing arrangements. Third-party arrangements continue to be permissible, and will be reviewed as appropriate during the normal supervisory process. The amendments are effective as of April 9, 2001. Operating Circulars Nos. 6 and 7, as posted on the Financial Services web site (www.frbservices.org), reflect these amendments. Questions on this matter may be directed, at this Bank, to Hank Wiener, Vice President, Electronic Payments Function.