Financial Stability
Oversight Council

Rulemaking

The Dodd-Frank Act authorized the Council to issue rules regarding the FSOC's Authority to Require Supervision and Regulation of Certain Nonbank Financial Companies, Authority to Designate Financial Market Utilities as Systematically Important, and Implementation of the Freedom of Information Act.  The Council provided notice and sought public comment on each of these rulemakings before issuing the final rules described below.  As Chairperson of the Council, the Treasury Secretary is also required to coordinate two other major rulemakings under the Dodd-Frank Act, the joint rulemaking on credit risk retention for asset-backed securities and the issuance of final regulations implementing the Volcker Rule.

Final Rules

Interpretive Guidance on Nonbank Financial Company Determinations

On December 4, 2019, the Council approved final interpretive guidance, replacing in its entirety the 2012 interpretive guidance.  The final interpretive guidance describes the approach the Council intends to take in prioritizing its work to identify and address potential risks to U.S. financial stability using an activities-based approach, and enhancing the analytical rigor and transparency in the processes the Council intends to follow if it were to consider making a determination to subject a nonbank financial company to supervision by the Board of Governors of the Federal Reserve System.

 

Final Rule on Authority to Designate Financial Market Utilities as Systemically Important 

Section 804 of the Dodd-Frank Act gives the Council the authority to designate as systemically important a Financial Market Utility (FMU) if the Council determines that its failure or a disruption to its operations 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 Council as systemically important would become subject to the requirements of Title VIII of the Dodd-Frank Act, including risk management standards and additional examinations.

 

Revision of Freedom of Information Act Regulations

On November 16, 2017, the FSOC adopted a final rule making revisions to the FSOC’s regulations under the Freedom of Information Act as required by the FOIA Improvement Act of 2016.​

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Last Updated: 12/9/2019 12:56 PM