FedNow(SM) and Regulation J Updates – ON-DEMAND WEBINARS

Date Recorded: December 21, 2022
Presenter: Mark Dever, AAP, CAMS, DIrector, FORVIS, LLP

A two-hour webinar to identify and discuss ways to take advantage of the new FedNow^SM Service, a real-time, gross settlement service that will be operated by the Federal Reserve (Fed).

On August 29, 2022, the Fed announced it has narrowed the timing of the FedNow^SM launch to “mid-year 2023, targeting a rollout of the service in the May to July timeframe”. On October 01, 2022, the final amendments to Regulation J took effect, which recognizes that the Fed will be operating another funds transfer system in addition to the FedWire® funds transfer service. Although depository financial institutions (DFIs) will not be “required” to participate in the FedNow^SM process (just as DFIs are not required to participate in FedWire® or FedACH®), DFIs choosing not to receive instant payments may find themselves at a competitive disadvantage in their respective markets. This webinar will focus on the opportunities and issues as implementation grows closer.

Here’s What You’ll Learn:

• The FedNow^SM process
• Participation options available to DFIs
• Regulation J amendments supporting FedNow^SM
• “Possible” Regulation E “issues”
• Resources available to assist with implementation
• Address questions and concerns

The FedNow^SM Service is a new instant payment service that the Federal Reserve Banks are developing to enable financial institutions of every size, and in every community across the U.S., to provide safe and efficient instant payment services in real time, around the clock, every day of the year. Through financial institutions participating in the FedNow^SM Service, businesses and individuals will be able to send and receive instant payments conveniently and recipients will have full access to funds immediately, giving them greater flexibility to manage their money and make time-sensitive payments.