Featured Product

    FED Extends Information Collections Under BHC and Federal Reserve Acts

    February 04, 2020

    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
    Related Articles
    News

    APRA Plans to Assess Climate Risks and Develop Prudential Guidance

    APRA published a letter that outlines its plans to undertake a climate change vulnerability assessment and develop a prudential practice guide focused on climate-related financial risks.

    February 24, 2020 WebPage Regulatory News
    News

    FDIC Publishes Guide to Help with Third-Party Risk Management

    The technology lab of FDIC (FDiTech) published a new guide to help financial technology, or fintech, companies and others partner with banks.

    February 24, 2020 WebPage Regulatory News
    News

    APRA to Transition to Annual Stress Testing of Large Banks in 2020

    APRA published key findings of the stress testing assessment conducted on authorized deposit-taking institutions.

    February 21, 2020 WebPage Regulatory News
    News

    IAIS Statement on Monitoring Period of Insurance Capital Standard

    IAIS published a statement from its Secretary General Jonathan Dixon on the Insurance Capital Standard (ICS) monitoring period.

    February 21, 2020 WebPage Regulatory News
    News

    EC Consults on Review of Non-Financial Reporting Directive

    EC is launched a consultation on the review of the Non-Financial Reporting Directive or NFRD (Directive 2014/95/EU, as part of its strategy to strengthen sustainable investment in Europe.

    February 20, 2020 WebPage Regulatory News
    News

    EIOPA Consults on Standards for Supervisory Reporting Under PEPP Rule

    EIOPA is consulting on the implementing technical standards for supervisory reporting and cooperation, as mandated by the Pan-European Personal Pension Product (PEPP) Regulation (Regulation 2019/1238).

    February 20, 2020 WebPage Regulatory News
    News

    EIOPA Publishes Statement on Adverse Interest Rate Environment

    EIOPA published a supervisory statement on the impact of the ultra-low or negative interest rate environment on the insurance sector in EU.

    February 20, 2020 WebPage Regulatory News
    News

    ECB Report on Transfer of Liquidity from EONIA Products to €STR

    ECB published a report on the transfer of liquidity from the cash and derivatives products of the Euro Overnight Index Average (EONIA) to the Euro Short-Term Rate (€STR).

    February 19, 2020 WebPage Regulatory News
    News

    ESRB Publishes Report on Systemic Cyberattacks

    ESRB published a report that explores systemic implications of cyber incidents, such as cyberattacks.

    February 19, 2020 WebPage Regulatory News
    News

    FSB Chair Sets Out Key Deliverables for G20 Presidency of Saudi Arabia

    FSB published a letter from the Chair Randal K. Quarles to the G20 finance ministers and Central Bank governors ahead of the meetings in Riyadh on February 22-23.

    February 19, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 4720