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
Pierre-Etienne Chabanel
Brings expertise in technology and software solutions around banking regulation, whether deployed on-premises or in the cloud.
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Previous Article
SEC Adopts Final Rules and Guidance Related to Security-Based SwapsRelated Articles
PRA to Elaborate on Approach to Transposition of CRD5 by Mid-December
PRA published a statement that explains when to expect further information on the PRA approach to transposing the Capital Requirements Directive (CRD5), including its approach to revisions to the definition of capital for Pillar 2A.
EIOPA Consults on KPIs on Sustainability for Non-Financial Reporting
EIOPA is consulting on the relevant ratios to be mandatorily disclosed by insurers and reinsurers falling within the scope of the Non-Financial Reporting Directive as well as on the methodologies to build these ratios.
SRB Sets Out Work Program for 2021-2023
SRB published the work program for 2021-2023, setting out a roadmap to further operationalize the Single Resolution Fund and to achieve robust resolvability of banks under its remit over the next three years.
ECB Publishes Guide on Management of Climate and Environmental Risks
ECB finalized guidance on the way it expects banks to prudently manage and transparently disclose climate and other environmental risks under the current prudential rules.
BCBS Amends Capital Treatment of Non-Performing Loan Securitizations
BCBS published a technical amendment to the capital treatment of securitizations of non-performing loans by banks.
BoE to Move Statistical Data Collection to BEEDs Portal
BoE announced that the Data and Statistics Division is planning to move collection of statistical data to the BoE Electronic Data Submission (BEEDS) portal.
APRA Updates Reporting Standards and Guidance for EFS Data Collection
APRA published the updated reporting standards and guidance for the collection of Economic and Financial Statistics (EFS), following a consultation process. Also published was a response letter to the feedback received on the proposal for amending the EFS reporting standards and guidance.
EC Consults on Criteria for Environmentally Sustainable Activities
EC is consulting on a draft delegated regulation to supplement the Taxonomy Regulation (2020/852) by establishing the technical screening criteria for determining the conditions under which an economic activity qualifies as environmentally sustainable.
IFRS Examines Incorporation of Climate Risk Issues into IFRS Standards
The IFRS Foundation published material highlighting the ways in which existing requirements in IFRS standards require companies to consider climate-related matters when their effect is material to the financial statements.
FSB Report Outlines Progress on Interest Rate Benchmark Reform
FSB published a progress report on the implementation of reforms to major interest rate benchmarks, including the London Inter-bank Offered Rate (LIBOR) benchmark.
