Federal Reserve seeks comment on proposed rulemaking to establish requirements for determining whether a company is predominantly engaged in financial activities

The following press release was published by the Board of Governors of the Federal Reserve System on April 2, 2012. It is reproduced in full below.

The Federal Reserve Board on Monday requested comment on a proposed amendment to the Board's Notice of Proposed Rulemaking (NPR) issued Feb. 11, 2011, to establish requirements for determining whether a company is "predominantly engaged in financial activities." Under Title 1 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, a company generally can be designated for Board supervision by the Financial Stability Oversight Council only if 85 percent or more of the company's revenues or assets are related to activities that are financial in nature under the Bank Holding Company Act. Some commenters to the February 2011 NPR asked whether conditions imposed on the conduct of financial activities by the Bank Holding Company Act and the Board's regulations should be considered in defining financial activities for purposes of Title I. The Board is therefore proposing to amend the NPR to clarify the activities that are financial for purposes of Title I. Comments on the proposed amendment must be submitted by May 25, 2012. For media inquiries, contact 202-452-2955 Comments on this proposal: Submit | View Federal Register notice: HTML | PDF Board Voting Record

Source: Board of Governors of the Federal Reserve System