On February 4, the Financial Stability Oversight Council (Council) today announced changes to certain practices relating to its process for reviewing nonbank financial companies for potential designation. Nonbank financial companies that are designated by the Council are subject to supervision by the Federal Reserve and enhanced standards. The Council will, amongst other things, inform companies earlier when they come under review and make available to the public additional information about its designations process. Release.
nonbank financial company
FSOC Proposed Rule on Systemic Importance of Nonbank Financial Companies
On October 11, pursuant to Section 113 of the Dodd-Frank Act and in response to comments to a proposed rule issued on January 18, the Financial Stability Oversight Council issued a second notice of proposed rulemaking and proposed interpretive guidance to provide additional details regarding the framework the FSOC intends to use in the process of assessing whether a nonbank financial company could pose a threat to U.S. financial stability. Comments must be submitted within 60 days of publication in the Federal Register. FSOC Proposed Rule.
FSOC Proposed Rule on Nonbank Financial Company Supervision
On January 18, the Financial Stability Oversight Council proposed a rule describing the criteria to be considered in determining whether a nonbank financial company is subject to supervision by the Board of Governors of the Fed. Under the Dodd-Frank Act, the FSOC is authorized to designate nonbank financial companies for enhanced supervision by the Board of Governors. The proposed rule is based on feedback received in response to an advance notice of proposed rulemaking regarding the designation criteria issued on October 6, 2010. Comments on the proposed rule must be received within 30 days after publication in the Federal Register. Treasury Release. Proposed Rule.