Federal Reserve Finalizes Key Definition to Be Used in Making “SIFI” Designations
The Federal Reserve recently issued a final rule defining what it means for a nonbank company to be “predominantly engaged in financial activities.” The term is a necessary analytical component to the Financial Stability Oversight Council’s designation of nonbank companies as “systemically important” under the Dodd-Frank Act. The term is also relevant to filers of Form PF, a relatively new form that requires certain advisors to private funds to provide information regarding controlled portfolio companies that are predominately engaged in financial activities.