    [United States Statutes at Large, Volume 128, 113th Congress, 2nd Session]
    [From the U.S. Government Publishing Office, www.gpo.gov]

    Public Law 113-279
    113th Congress

    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'--

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    ``(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)

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    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.''.

    Approved December 18, 2014.

    LEGISLATIVE HISTORY--S. 2270:
    ---------------------------------------------------------------------------

    CONGRESSIONAL RECORD, Vol. 160 (2014):
    June 3, considered and passed Senate.
    Dec. 10, considered and passed House.