[Federal Register Volume 84, Number 49 (Wednesday, March 13, 2019)]
[Rules and Regulations]
[Pages 8958-8959]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-04487]
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FINANCIAL STABILITY OVERSIGHT COUNCIL
12 CFR Part 1310
RIN 4030-AA03
Authority To Require Supervision and Regulation of Certain
Nonbank Financial Companies
AGENCY: Financial Stability Oversight Council.
ACTION: Final rule.
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SUMMARY: The Financial Stability Oversight Council (the ``Council'') is
adopting a rule stating that the Council shall not amend or rescind its
interpretive guidance on nonbank financial company determinations
without providing the public with notice and an opportunity to comment
consistent with the Administrative Procedure Act.
DATES: Effective date: April 12, 2019.
FOR FURTHER INFORMATION CONTACT: Bimal Patel, Office of Domestic
Finance, Treasury, at (202) 622-2850; Eric Froman, Office of the
General Counsel, Treasury, at (202) 622-1942; or Mark Schlegel, Office
of the General Counsel, Treasury, at (202) 622-1027.
SUPPLEMENTARY INFORMATION:
I. Background
Section 111 of the Dodd-Frank Wall Street Reform and Consumer
Protection Act (12 U.S.C. 5321) (the ``Dodd-Frank Act'') established
the Financial Stability Oversight Council. The purposes of the Council
under section 112 of the Dodd-Frank Act (12 U.S.C. 5322) are (A) to
identify risks to the financial stability of the United States that
could arise from the material financial distress or failure, or ongoing
activities, of large, interconnected bank holding companies or nonbank
financial companies, or that could arise outside the financial services
marketplace; (B) to promote market discipline, by eliminating
expectations on the part of shareholders, creditors, and counterparties
of such companies that the Government will shield them from losses in
the event of failure; and (C) to respond to emerging threats to the
stability of the United States financial system.
The Dodd-Frank Act also authorizes the Council to determine that
certain nonbank financial companies will be subject to supervision by
the Board of Governors of the Federal Reserve System (the ``Federal
Reserve'') and prudential standards. On April 11, 2012, the Council
issued interpretive guidance (the ``2012 Interpretive Guidance'')
regarding the manner in which the Council makes determinations under
section 113 of the Dodd-Frank Act, as an appendix to a final rule
(together, the ``2012 Rule and Interpretive Guidance''). The 2012 Rule
and Interpretive Guidance were codified at part 1310 to title 12 of the
Code of Federal Regulations.
The Council is modifying the rule text in the 2012 Final Rule and
Interpretive Guidance by adding a new section (12 CFR 1310.3) stating
that the Council shall not amend or rescind the interpretive guidance
set forth in appendix A to part 1310 without providing the public with
notice and an opportunity to comment.
The Council is adopting this rule pursuant to its authority under
section
[[Page 8959]]
111(e)(2) of the Dodd-Frank Act, which authorizes the Council to adopt
such rules as may be necessary for the conduct of the business of the
Council, and states that such rules shall be rules of agency
organization, procedure, or practice for purposes of section 553 of
title 5, United States Code. This new section is a rule of agency
procedure, and is therefore not subject to the requirement to provide
public notice and an opportunity to comment under the Administrative
Procedure Act.\1\ As a result, the Council is adopting it in final
form. Because no notice of proposed rulemaking is required, the
provisions of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) do
not apply.
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\1\ See 5 U.S.C. 553(b)(A).
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Contemporaneous with the publication of this final rule, the
Council is separately publishing proposed interpretive guidance that
would replace the 2012 Interpretive Guidance. That proposal includes a
request for public comment.
II. Amendment to 12 CFR Part 1310
In order to promote the Council's engagement with market
participants and other interested parties, the Council is adding a new
section to the rules referenced above, stating that the Council shall
not amend or rescind the interpretive guidance set forth in appendix A
to the rules without providing the public with notice and an
opportunity to comment under the Administrative Procedure Act.
List of Subjects in 12 CFR Part 1310
Brokers, Investments, Securities.
In accordance with the foregoing, the Council amends 12 CFR part
1310 as follows:
PART 1310--AUTHORITY TO REQUIRE SUPERVISION AND REGULATION OF
CERTAIN NONBANK FINANCIAL COMPANIES
0
1. The authority citation for part 1310 continues to read as follows:
Authority: 12 U.S.C. 5321; 12 U.S.C. 5322; 12 U.S.C. 5323.
0
2. Add Sec. 1310.3 to read as follows:
Sec. 1310.3 Amendments.
The Council shall not amend or rescind appendix A to this part
without providing the public with notice and an opportunity to comment
in accordance with the procedures applicable to legislative rules under
5 U.S.C. 553.
Dated: March 6, 2019.
Bimal Patel,
Deputy Assistant Secretary for the Financial Stability Oversight
Council, Department of the Treasury.
[FR Doc. 2019-04487 Filed 3-12-19; 8:45 am]
BILLING CODE 4810-25-P