FED Extends Information Collections Under BHC and Federal Reserve Acts
FED published a Federal Register notice adopting a proposal to extend for three years, without revision, certain reporting and recordkeeping requirements, including the notification of failure by banks to meet the certain prescribed capital or management requirements, also known as FR 4012.
FED published, on October 18, 2019, a notice requesting public comment on the extension, without revision, of the filings related to GLB Act information collection. The comment period for this notice expired on December 17, 2019. FED did not receive any comments. The GLB Act amendments to the Bank Holding Company Act and the Federal Reserve Act allow a bank holding company that elects to become a financial holding company and a savings and loan holding company or foreign banking organization that elects to be treated as a financial holding company, to engage in a broad range of otherwise impermissible financial activities, including securities underwriting, insurance sales and underwriting, and merchant banking. The particular reporting and recordkeeping requirements being extended for three years via this Federal Register notice are:
- Declarations to Become a Financial Holding Company (FR 4010)
- Requests for Determinations and Interpretations Regarding Activities Financial in Nature (FR 4011)
- Notices of Failure to Meet Capital or Management Requirements (FR 4012)
- Notices by State Member Banks to Invest in Financial Subsidiaries (FR 4017)
- Regulatory Relief Requests Associated with Merchant Banking Activities (FR 4019)
- Recordkeeping Requirements Associated with Merchant Banking Activities (FR 4023)
Both the GLB Act and the implementing regulations of FED impose certain reporting and recordkeeping requirements associated with operating as a financial holding company. The Bank Holding Company Act provides that a company is eligible for financial holding company status only if it and all of its subsidiary depository institutions are well-managed and well-capitalized. Regulations Y and LL of FED require a financial holding company that falls out of compliance with these requirements to notify FED of its non-compliance. Regulation Y provides that the FR 4012 notice must identify the non-compliant banking entity and the area of non-compliance. Regulation Y does not prescribe a format for such notices. A financial holding company must file an FR 4012 notice within 15 calendar days of becoming aware of failure to meet capital or management requirements. A request for an extension of the 45-day period in which the financial holding company must execute an agreement acceptable to FED must include an explanation of why an extension is necessary.
Related Links
Keywords: Americas, US, Banking, FR 4012, Regulation Y, BHC Act, Information Collection, Regulation II, Capital Requirements, Financial Holding Companies, Federal Reserve Act, FED
Featured Experts

María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer

Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.

Patrycja Oleksza
Applies proficiency and knowledge to regulatory capital and reporting analysis and coordinates business and product strategies in the banking technology area
Previous Article
SEC Adopts Final Rules and Guidance Related to Security-Based SwapsRelated Articles
EBA Issues Erratum for Phase 2 Package of Reporting Framework 3.0
EBA published an erratum for the technical package on phase 2 of the reporting framework 3.0.
MAS Amends Notice on Related Party Transactions of Banks
MAS amended Notice 643A that addresses requirements for banks to prepare statements of exposures and credit facilities to related concerns or parties.
ECB Amends Guideline on Euro Short-Term Rate
ECB has published, in the Official Journal of the European Union, the Guideline 2021/565 on the euro short-term rate (€STR) and this guideline amends the previous ECB Guideline 2019/1265.
EBA Consults on Standards Related to FRTB-SA
EBA launched a consultation on the draft regulatory technical standards on the list of countries with an advanced economy for calculating the equity risk under the alternative standardized approach (FRTB-SA).
PRA Proposes Rules Related to IRB Approach for Credit Risk
PRA is proposing, via CP7/21, the approach to implementing new requirements related to the specification of the nature, severity, and duration of an economic downturn in the internal ratings-based (IRB) approach to credit risk.
BoE Outlines Regulatory Treatment of Recovery Loan Scheme of UK
The UK government launched the Recovery Loan Scheme (RLS) as part of its continued COVID-19 support for UK businesses, as announced by HM Treasury on March 03, 2021.
FSB Addresses G20 on COVID Measures, TBTF Reforms, and Climate Risks
FSB published a letter, from its Chair Randal K. Quarles, to the G20 Finance Ministers and Central Bank Governors, ahead of their virtual meeting on April 07, 2021.
OSFI Unwinds Temporary Increase to Covered Bond Limit for Banks
OSFI issued a letter to the deposit-taking institutions issuing covered bonds and announced the unwinding of the temporary increase to the covered bond limit for deposit-taking institutions, effective immediately.
EU Amends CRR and Securitization Regulation in Response to Pandemic
To support recovery from the COVID-19 crisis, EU has published two regulations to amend the securitization framework, as set out in the Securitization Regulation (2017/2402) and the Capital Requirements Regulation or CRR (575/2013).
HM Treasury Announces G7 Agreement on Green Agenda Ahead of COP26
HM Treasury announced that G7 Finance Ministers and Central Bank Governors met ahead of COP 26, the 2021 UN Climate Change Conference, and agreed on green agenda.