§5361 — Title 12 Banks and Banking | U.S. Code

Summary

The Board of Governors can require nonbank financial firms it supervises, and their subsidiaries, to file sworn reports about their finances, their systems for spotting and controlling risks, how their activities might threaten U.S. financial stability, and whether they follow the rules. The Board must try to use information the firms already give to federal or state regulators, public filings, and audited financial statements. If asked, a firm or subsidiary must quickly provide that information. The Board must set data standards for regular filings and try to make those standards match other federal data rules when possible. The Board can also examine those firms and subsidiaries to learn about their operations, finances, risks, risk controls, and compliance. It should rely on exams done by the subsidiary’s main regulator and on the other information mentioned above whenever it can. Before ordering a report or starting an exam of a subsidiary, the Board must give reasonable notice to and consult with that subsidiary’s primary regulator and avoid duplicate exams, reports, or information requests.

Title 12, §5361

Banks and Banking — Source: USLM XML via OLRC

(a)(1)The Board of Governors may require each nonbank financial company supervised by the Board of Governors, and any subsidiary thereof, to submit reports under oath, to keep the Board of Governors informed as to—

(A)the financial condition of the company or subsidiary, systems of the company or subsidiary for monitoring and controlling financial, operating, and other risks, and the extent to which the activities and operations of the company or subsidiary pose a threat to the financial stability of the United States; and

(B)compliance by the company or subsidiary with the requirements of this subchapter.

(2)In carrying out subsection (a), the Board of Governors shall, to the fullest extent possible, use—

(A)reports and supervisory information that a nonbank financial company or subsidiary thereof has been required to provide to other Federal or State regulatory agencies;

(B)information otherwise obtainable from Federal or State regulatory agencies;

(C)information that is otherwise required to be reported publicly; and

(D)externally audited financial statements of such company or subsidiary.

(3)Upon the request of the Board of Governors, a nonbank financial company supervised by the Board of Governors, or a subsidiary thereof, shall promptly provide to the Board of Governors any information described in paragraph (2).

(4)(A)The Board of Governors shall adopt data standards for all information that, through a collection of information, is regularly filed with or submitted to the Board of Governors under this subsection by any nonbank financial company supervised by the Board of Governors or any subsidiary thereof.

(B)The data standards required under subparagraph (A) shall incorporate, and ensure compatibility with (to the extent feasible), all applicable data standards established in the rules promulgated under section 5334 of this title, including, to the extent practicable, by having the characteristics described in clauses (i) through (vi) of subsection (c)(1)(B) of section 5334 of this title.

(b)(1)Subject to paragraph (2), the Board of Governors may examine any nonbank financial company supervised by the Board of Governors and any subsidiary of such company, to inform the Board of Governors of—

(A)the nature of the operations and financial condition of the company and such subsidiary;

(B)the financial, operational, and other risks of the company or such subsidiary that may pose a threat to the safety and soundness of such company or subsidiary or to the financial stability of the United States;

(C)the systems for monitoring and controlling such risks; and

(D)compliance by the company or such subsidiary with the requirements of this subchapter.

(2)For purposes of this subsection, the Board of Governors shall, to the fullest extent possible, rely on reports of examination of any subsidiary depository institution or functionally regulated subsidiary made by the primary financial regulatory agency for that subsidiary, and on information described in subsection (a)(2).

(c)The Board of Governors shall—

(1)provide reasonable notice to, and consult with, the primary financial regulatory agency for any subsidiary before requiring a report or commencing an examination of such subsidiary under this section; and

(2)avoid duplication of examination activities, reporting requirements, and requests for information, to the fullest extent possible.

Notes & Related Subsidiaries

Editorial Notes

References in Text

This subchapter, referred to in subsecs. (a)(1)(B) and (b)(1)(D), was in the original “this title”, meaning title I of Pub. L. 111–203, July 21, 2010, 124 Stat. 1391, which is classified principally to this subchapter. For complete classification of title I to the Code, see

Short Title

note set out under section 5301 of this title and Tables.

Amendments

2022—Subsec. (a)(4). Pub. L. 117–263 added par. (4).

Statutory Notes and Related Subsidiaries

Rule of

Construction

Regarding No New Disclosure RequirementsAmendment by Pub. L. 117–263 not to be construed to require certain additional information to be collected or disclosed, see section 5864 of Pub. L. 117–263, set out as a note under section 253 of this title.

§5361 Reports by and Examinations of Nonbank Financial Companies by the Board of Governors