Navigation Florida Bankers Association objects to IOTA rule change pegging interest rates to indexed rate points
Saying it “goes too far, too fast,” the Florida Bankers Association is objecting to a new Bar rule requiring lawyers keep their trust accounts in institutions that tie interest rates for IOTA accounts to specific indexed rate points.
Saying they were not given adequate notice of the proposed amendments to Rule 5-1.1, decided March 16 in Case No. SC22-1292, the Florida Bankers Association (FBA) filed a motion for rehearing March 31 despite not being a party to the case.
Specifically, the new language provides: “When the Wall Street Journal Prime Rate (‘indexed rate’) is between 325 and 499 basis points (3.25% and 4.99%), the yield must be no less than 300 basis points (3.00%) below the indexed rate in effect on the first business day of each month. When the indexed rate is 500 basis points (5.00%) or above, the yield must be no less than 40% of the indexed rate in effect on the first business day of each month.”
