Broker and Freight Forwarder Financial Responsibility Rule Published

FMCSA amends the regulations pertaining to financial responsibility requirements for brokers of property and freight forwarders in five separate areas: assets “readily available”; immediate suspension of broker/freight forwarder operating authority; surety or trust responsibilities in cases of broker/freight forwarder financial failure or insolvency; enforcement authority; and entities eligible to provide trust funds for brokers and freight forwarders, which are filed using Form BMC-85, Broker’s or Freight Forwarder’s Trust Fund Agreement under 49 U.S.C. 13906 or Notice of Cancellation of the Agreement.

This final rule revises five regulatory areas regarding broker and freight forwarder financial responsibility:

1. Assets Readily Available: Implements Congress's mandate that broker/freight forwarder trust funds contain assets easily liquidated within 7 days. Lists acceptable asset types for BMC-85 trusts.

2. Immediate Suspension of Operating Authority: FMCSA may suspend a broker or freight forwarder’s operating authority if their financial security falls below $75,000 and is not replenished within 7 days.

3. Responsibilities in Financial Failure or Insolvency: Requires sureties/trustees to notify FMCSA of a broker/freight forwarder's financial failure or insolvency, leading to a suspension notice and FMCSA Register update. The URS platform will be used for information management.

4. Enforcement Authority: Implements MAP-21's suspension requirement for surety/trust fund providers, adding monetary penalties and suspension for non-compliance.

5. Eligibility for Providing Trust Funds: Excludes loan and finance companies from providing BMC-85 trusts unless certified as an eligible financial institution.

Each area aims to ensure financial stability and quick access to funds, with FMCSA monitoring and enforcement.

Broker and Freight Forwarder Financial Responsibility