Edward Jones reapplies for approval of Integrated Licensing Corporation's charter
Edward Jones Re-applies for Industrial Bank Charter
Edward Jones, a well-known financial services firm, has re-applied for an Industrial Loan Company (ILC) charter from the Federal Deposit Insurance Corporation (FDIC) and the Utah Department of Financial Institutions. This move comes after a period of uncertainty regarding ILC charters, but recent developments suggest a more open stance from the FDIC.
The FDIC, under acting chair Travis Hill, has shown a renewed interest in encouraging new bank formations, including ILCs from non-banks like Edward Jones, General Motors (GM), and Nissan. This shift is in response to the withdrawal of some of the previous Biden-era restrictions that required ILC applicants to prove independence from parent firms and meet community lending needs.
Edward Jones is not alone in its pursuit of an ILC charter. Other non-bank firms, such as GM and Nissan, are also seeking ILC charters under the FDIC’s revised approach. This approach aims to facilitate new entries to the banking sector without the stringent proposals that were abandoned.
If granted, Edward Jones would offer additional products such as certificates of deposit and an expanded availability of its securities-based credit line. Alison Carnie, principal and head of the banking business unit at Edward Jones, stated that an affiliated bank would allow them to better meet clients' complex financial needs to achieve long-term goals.
In a separate development, Edward Jones will begin to offer checking and credit card products to its U.S. clients through a co-brand partnership with U.S. Bank, announced last August. This partnership will help Edward Jones expand its banking offerings while it awaits a decision on its ILC charter application.
The FDIC is also working to issue a request for information to address issues connected to ILC charter applications. This move indicates a continued effort to streamline the process and encourage more applications from non-bank firms.
Opponents of the ILC charter argue that it exempts companies from the definition of a "bank" under the Bank Holding Company Act, allowing them to bypass oversight by the Federal Reserve. Trade groups, such as the Independent Community Bankers of America, have spoken out against ILCs, stating that the designation violates the longstanding separation of banking and commerce and leaves dangerous gaps in oversight.
As of mid-2025, there are no recent approvals or outright denials announced publicly for any of the ILC charter applications. The overall environment, however, shows more acceptance towards non-bank ILC applicants, contrasting with the decade-long FDIC freeze on new charters before 2020.
[1] Source: Banking Dive, June 2025
- Edward Jones, along with other non-bank firms like General Motors and Nissan, is seeking to expand its business ventures by investing in commercial activities through an Industrial Loan Company (ILC) charter.
- If successful, Edward Jones intends to use its affiliated bank to offer a wider range of financial products, such as certificates of deposit and a more accessible securities-based credit line, to meet clients' complex financial needs and aid in achieving long-term goals.
