FDIC Proposes First Overhaul of Confidential Supervisory Information Rules in 30 Years
In-house counsel at FDIC-supervised banking institutions must evaluate the proposed first 30-year overhaul of confidential supervisory information rules, which would expand permissible non-public disclosures to a broader set of third parties without prior FDIC approval.
The FDIC has issued a proposed rule updating its Confidential Supervisory Information (CSI) disclosure framework for the first time since 1996, with public comments due August 31, 2026. If finalized, the rule would reorganize existing CSI regulations and eliminate prior approval requirements for disclosures of CSI to a wider range of recipients, including outside counsel, auditors, consultants, IT vendors, affiliate entities, and prospective merger partners, provided recipients sign confidentiality agreements and meet other specified conditions. In-house counsel at FDIC-regulated institutions should review the proposed rule now to evaluate needed updates to internal CSI handling and disclosure policies ahead of finalization.