[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