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Thursday, March 28, 2024 | Back issues
Courthouse News Service Courthouse News Service

Fed to Watch Holding|Co’s for Foreign Nations

WASHINGTON (CN) - The Federal Reserve will supervise holding companies for foreign regulators, according to a new rule.

Securities holding companies that must show foreign regulators they are subject to regulation in the United States to operate in that country may turn to the Federal Reserve, effective July 20.

Prior to passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act, nonbank companies that own at least one registered broker or dealer could apply for supervision by the Securities and Exchange Commission.

Under the rules, firms that register with the Fed are subject to the full examination, supervision, and enforcement regime applicable to a registered bank holding company, including capital requirements, except for prohibitions on non-banking activities.

To register for supervision, firms have to fill out a form and provide the Fed with information about their organizational structure, capital, and financial condition. Under the final rule, registration becomes effective no later than 45 days from the date the Fed receives all required information.

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