Federal Reserve Board Approves Final Rule Establishing Requirements for Determining when a Company is “Predominantly Engaged in Financial Activities”

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Federal Reserve Bank of San Francisco

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April 8, 2013

On Wednesday, April 3, 2013, the Federal Reserve Board announced approval of a final rule that establishes the requirements for determining when a company is “predominantly engaged in financial activities.” The requirements will be used by the Financial Stability Oversight Council (FSOC) when it considers the potential designation of a nonbank financial company for consolidated supervision by the Federal Reserve. The final rule will become effective on May 6, 2013.