FSOC Issues Final Rule for Making "Systemically Important" Designations

Section 113 of the Dodd-Frank Wall Street Reform and Consumer Protection Act authorizes the Financial Stability Oversight Council to determine that a nonbank financial company shall be supervised by the Federal Reserve Board and subject to prudential standards. On April 3, 2012, the FSOC issued a final rule on how it will make such determinations. We provide a summary of this final rule in this Advisory.