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Federal Deposit Insurance Corporation

Division of Supervision

550 17th Street NW, Washington, DC 20429

Year 2000 Fiduciary Services Guidance
August 31, 1998



Interagency Guidance on Fiduciary Services and Year 2000 Readiness


The Federal Financial Institutions Examination Council (FFIEC) has issued the attached
statement to alert financial institutions to the potential risks associated with fiduciary services
and the Year 2000 date change. The interagency statement identifies areas of potential risk and
recommended actions to manage those risks.


The Federal Deposit Insurance Corporation (FDIC) expects financial institutions that offer
fiduciary services to conduct a review of those services to identify potential liabilities.
Examination staff will evaluate the review process as part of an institution's upcoming Phase II
on-site assessment to ensure the institution has taken appropriate action to manage identified
Management is encouraged to actively utilize the services of its internal audit process and
external audit programs. A well-coordinated review and reporting process should substantially
lessen the risk that problems will go undetected.
The FDIC and state banking authorities will continue to review the efforts of all FDIC-supervised
banks to become Year 2000 ready. An institution's failure to appropriately address Year 2000
readiness problems may result in supervisory action, including formal and informal enforcement
actions, denials of applications filed pursuant to the Federal Deposit Insurance Act, civil money
penalties, reductions in the institution's management component or composite ratings, and
increased risk-related premiums.


The attached interagency statement and related information on Year 2000 issues are available
on the Internet via the World Wide Web at /news/news/financial/ or
Nicholas J. Ketcha Jr.


FFIEC Interagency Statement

Distribution: FDIC-Supervised Banks (Commercial and Savings)
NOTE: Paper copies of FDIC financial institution letters may be obtained through the FDIC's
Public Information Center, 801 17th Street, NW, Room 100, Washington, DC 20434 (800-2766003 or (703) 562-2200).