Authority to Require Supervision and Regulation of Certain Nonbank Financial Companies – October 11, 2011
Section 113 of the Dodd-Frank Act authorizes the Council to require a nonbank financial company to be supervised by the Board of Governors of the Federal Reserve System and be subject to prudential standards if the Council determines that material financial distress at the nonbank financial company, or the nature, scope, size, scale, concentration, interconnectedness, or mix of the activities of the nonbank financial company, could pose a threat to the financial stability of the United States.
The NPR will have a 60-day public comment period.
An advance notice of proposed rulemaking (ANPR) on nonbank designations was approved for public comment at the Council's October 2010 meeting. Additionally, the Council approved a Notice of Proposed Rulemaking (NPR) on nonbank designations for public comment at its January 2011 meeting.
NPR Regarding Designations of Financial Market Utilities for Heightened Supervision - March 17, 2011
Section 804 of the Dodd-Frank Act gives the FSOC the authority to identify and designate as systemically important a financial market utility (FMU) if the FSOC determines that its failure or disruption could create or increase the risk of significant liquidity or credit problems spreading among financial institutions or markets and thereby threaten the stability of the U.S. financial system. An FMU designated by the FSOC as systemically important would become subject to the heightened prudential and supervisory provisions of Title VIII of the Dodd-Frank Act.Through this proposed rule, the FSOC is seeking to gather additional information to inform the rule by which it will designate FMUs as systemically important. This is the second step in the FSOC’s rulemaking process for designating systemically important FMUs. An advance notice of proposed rulemaking (ANPR) was discussed and approved for public comment at the FSOC’s November meeting. The NPR will have a 60-day public comment period, with FSOC action on the final rule expected later this year.
NPR on FSOC’s FOIA Regulations - March 17, 2011
Section 112 of the Dodd-Frank Act provides that the Freedom of Information Act (FOIA), including the exceptions thereunder, shall apply to any data or information submitted to the FSOC. This NPR would implement the requirements of the FOIA as applied to the FSOC by setting forth procedures for requesting access to FSOC records.
NPR Regarding Authority to Require Supervision and Regulation of Certain Nonbank Financial Companies - January 18, 2011
The Dodd-Frank Act mandated that the FSOC ensure that all financial companies whose failure could pose a threat to the financial stability of the United States – not just banks – will be subject to strong oversight. Using the considerations set forth in the Dodd-Frank Act, as well as taking into account public comments on a previously issued Advance Notice of Proposed Rulemaking, the FSOC today approved a proposed rule outlining the criteria that will inform the FSOC’s designation of such firms and the procedures the FSOC will use in the designation process. Under the FSOC’s proposed rule, if designated, the largest, most interconnected and highly-leveraged companies would face stricter prudential regulation, including higher capital requirements and more robust consolidated supervision. The NPR will have a 30-day public comment period, with FSOC action on the final designation criteria and process expected later this year.