Financial Stability Oversight Council Releases Proposed Rules and Interpretive Guidance on Designations of Systemically Important Nonbank Financial Companies
On October 11, 2011, the Financial Stability Oversight Council (the “FSOC”) issued a second notice of proposed rulemaking and interpretive guidance regarding the standards and process that it will use to determine whether a nonbank financial company should be treated as “systemically important” and, therefore, subject to supervision by the Federal Reserve in accordance with the Dodd-Frank Wall Street Reform and Consumer Protection Act. In particular, the FSOC has outlined a three-stage process that it intends to follow in making so-called “SIFI” determinations. Comments on the FSOC’s proposal are due by December 19, 2011.