[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 2270 Introduced in Senate (IS)]
113th CONGRESS
2d Session
S. 2270
To clarify the application of certain leverage and risk-based
requirements under the Dodd-Frank Wall Street Reform and Consumer
Protection Act.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
April 29, 2014
Ms. Collins (for herself, Mr. Brown, Mr. Johanns, Mr. Kirk, and Mr.
Tester) introduced the following bill; which was read twice and
referred to the Committee on Banking, Housing, and Urban Affairs
_______________________________________________________________________
A BILL
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.--
Notwithstanding any other provision of law, 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
or a regulated foreign subsidiary or a regulated foreign
affiliate of such person that files its holding company
financial statements utilizing only Statutory Accounting
Principles in accordance with State law, shall not be required
to prepare such financial statements in accordance with
Generally Accepted Accounting Principles.''.
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