[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 2270 Enrolled Bill (ENR)]
S.2270
One Hundred Thirteenth Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Friday,
the third day of January, two thousand and fourteen
An Act
To clarify the application of certain leverage and risk-based
requirements under the Dodd-Frank Wall Street Reform and Consumer
Protection Act.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Insurance Capital Standards
Clarification Act of 2014''.
SEC. 2. CLARIFICATION OF APPLICATION OF LEVERAGE AND RISK-BASED CAPITAL
REQUIREMENTS.
Section 171 of the Dodd-Frank Wall Street Reform and Consumer
Protection Act (12 U.S.C. 5371) is amended--
(1) in subsection (a), by adding at the end the following:
``(4) Business of insurance.--The term `business of insurance'
has the same meaning as in section 1002(3).
``(5) Person regulated by a state insurance regulator.--The
term `person regulated by a State insurance regulator' has the same
meaning as in section 1002(22).
``(6) Regulated foreign subsidiary and regulated foreign
affiliate.--The terms `regulated foreign subsidiary' and `regulated
foreign affiliate' mean a person engaged in the business of
insurance in a foreign country that is regulated by a foreign
insurance regulatory authority that is a member of the
International Association of Insurance Supervisors or other
comparable foreign insurance regulatory authority as determined by
the Board of Governors following consultation with the State
insurance regulators, including the lead State insurance
commissioner (or similar State official) of the insurance holding
company system as determined by the procedures within the Financial
Analysis Handbook adopted by the National Association of Insurance
Commissioners, where the person, or its principal United States
insurance affiliate, has its principal place of business or is
domiciled, but only to the extent that--
``(A) such person acts in its capacity as a regulated
insurance entity; and
``(B) the Board of Governors does not determine that the
capital requirements in a specific foreign jurisdiction are
inadequate.
``(7) Capacity as a regulated insurance entity.--The term
`capacity as a regulated insurance entity'--
``(A) includes any action or activity undertaken by a
person regulated by a State insurance regulator or a regulated
foreign subsidiary or regulated foreign affiliate of such
person, as those actions relate to the provision of insurance,
or other activities necessary to engage in the business of
insurance; and
``(B) does not include any action or activity, including
any financial activity, that is not regulated by a State
insurance regulator or a foreign agency or authority and
subject to State insurance capital requirements or, in the case
of a regulated foreign subsidiary or regulated foreign
affiliate, capital requirements imposed by a foreign insurance
regulatory authority.''; and
(2) by adding at the end the following new subsection:
``(c) Clarification.--
``(1) In general.--In establishing the minimum leverage capital
requirements and minimum risk-based capital requirements on a
consolidated basis for a depository institution holding company or
a nonbank financial company supervised by the Board of Governors as
required under paragraphs (1) and (2) of subsection (b), the
appropriate Federal banking agencies shall not be required to
include, for any purpose of this section (including in any
determination of consolidation), a person regulated by a State
insurance regulator or a regulated foreign subsidiary or a
regulated foreign affiliate of such person engaged in the business
of insurance, to the extent that such person acts in its capacity
as a regulated insurance entity.
``(2) Rule of construction on board's authority.--This
subsection shall not be construed to prohibit, modify, limit, or
otherwise supersede any other provision of Federal law that
provides the Board of Governors authority to issue regulations and
orders relating to capital requirements for depository institution
holding companies or nonbank financial companies supervised by the
Board of Governors.
``(3) Rule of construction on accounting principles.--
``(A) In general.--A depository institution holding company
or nonbank financial company supervised by the Board of
Governors of the Federal Reserve that is also a person
regulated by a State insurance regulator that is engaged in the
business of insurance that files financial statements with a
State insurance regulator or the National Association of
Insurance Commissioners utilizing only Statutory Accounting
Principles in accordance with State law, shall not be required
by the Board under the authority of this section or the
authority of the Home Owners' Loan Act to prepare such
financial statements in accordance with Generally Accepted
Accounting Principles.
``(B) Preservation of authority.--Nothing in subparagraph
(A) shall limit the authority of the Board under any other
applicable provision of law to conduct any regulatory or
supervisory activity of a depository institution holding
company or non-bank financial company supervised by the Board
of Governors, including the collection or reporting of any
information on an entity or group-wide basis. Nothing in this
paragraph shall excuse the Board from its obligations to comply
with section 161(a) of the Dodd-Frank Wall Street Reform and
Consumer Protection Act (12 U.S.C. 5361(a)) and section
10(b)(2) of the Home Owners' Loan Act (12 U.S.C. 1467a(b)(2)),
as appropriate.''.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.