FSOC votes for Fed to supervise nonbank financial institutions
By 
Aaron Nicodemus2023-04-24T18:28:00
Federal regulators proposed Friday to place nonbank financial institutions (NBFIs), such as hedge and money market funds, under supervision of the Federal Reserve Board if their activities are deemed to pose a systemic risk to the U.S. financial system.
The Financial Stability Oversight Council (FSOC), comprised of regulators including Fed Chair Jerome Powell and Securities and Exchange Commission Chair Gary Gensler, voted unanimously to adopt a new framework for designating NBFIs under the Fed’s supervision.
The framework will “be subject to prudential standards” that “will be firm-specific and may include an assessment of quantitative and qualitative information that the council deems relevant to a particular [NBFI],” FSOC said.
THIS IS MEMBERS-ONLY CONTENT
You are not logged in and do not have access to members-only content.
If you are already a registered user or a member, SIGN IN now.
Related articles
-
News BriefFSOC framework details considerations of financial stability risks
A new analytic framework approved by the Financial Stability Oversight Council seeks to provide further clarity into how the U.S. financial system is monitored for potential financial stability risks.
-
News BriefFed governor teases new TPRM guidance for banks
The Federal Reserve and other U.S. banking agencies are working to develop joint guidance to clarify regulatory expectations around third-party risk management, according to Fed Governor Michelle Bowman.
-
ArticleCFPB proposes repeat offender registry for nonbank consumer law violations
The Consumer Financial Protection Bureau proposed a rule that would require certain nonbank financial firms to register consumer protection orders filed against them by other federal agencies, courts, or states into a new, publicly accessible registry.
More from Regulatory Policy
-
ArticleU.K. listed companies must adapt to new sustainability reporting regime by 2027
Sustainability reporting rules for U.K. listed companies are set to change. The U.K. financial regulator has launched a consultation laying out its proposals, which aim to align the reporting regime with the international ISSB standards.
-
ArticleU.K. ‘buy now pay later’ regulation signals end of ‘Wild West’ fintech loans system
Firms offering “buy now, pay later” financing will become part of the regulated financial services sector in the U.K. from July 15. Compliance teams must act now to ensure they are ready to introduce rules and establish creditworthiness assessment processes, adapt systems, and change data processes before the deadline.
-
ArticleNew EU rules will force companies to come clean on pay
New rules that will be introduced this June will require companies based in the European Union (EU) to explain why some workers are paid more money for the same job and remedy any “unjustified” discrepancies.