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.
Keywords: Americas, US, Banking, FR 4012, Regulation Y, BHC Act, Information Collection, Regulation II, Capital Requirements, Financial Holding Companies, Federal Reserve Act, FED
Previous ArticleSEC Adopts Final Rules and Guidance Related to Security-Based Swaps
FDIC is seeking comments on a rule to amend the interagency guidelines for real estate lending policies—also known as the Real Estate Lending Standards.
MAS revised Notices 637 and 1111 on the risk-based capital adequacy requirements, along with Notice 656 on the exposures to single counterparty groups for banks incorporated in Singapore.
ISDA is consulting on the implementation of fallbacks for the sterling LIBOR ICE Swap Rate and for the USD LIBOR ICE Swap Rate.
SEC announced that the Office of Information and Regulatory Affairs released the Spring 2021 Unified Agenda of Regulatory and Deregulatory Actions.
BIS and BoE launched the BIS Innovation Hub Center in London, which is the fourth new Innovation Hub Centre to be opened in the past two years.
ESRB published recommendations on the reciprocation of macro-prudential measures in Belgium, France, Luxembourg, Norway, and Sweden.
MAS revised multiple notices that are applicable to banks and merchant banks in Singapore and have been issued pursuant to the Banking Act (Cap 19).
EC published the Delegated Regulation 2021/931, which supplements the Capital Requirements Regulation (CRR or Regulation 575/2013) with regard to the regulatory technical standards specifying the method for identifying derivative transactions with one or more than one material risk driver.
BCBS is consulting on preliminary proposals for the prudential treatment of cryptoasset exposures of banks.
EBA issued a revised list of validation rules under the implementing technical standards on supervisory reporting.