Title 12 — Banks and BankingRelease 119-73not60

§5370 Safe Harbor

Title 12 › Chapter 53— WALL STREET REFORM AND CONSUMER PROTECTION › Subchapter I— FINANCIAL STABILITY › Part C— Additional Board of Governors Authority for Certain Nonbank Financial Companies and Bank Holding Companies › § 5370

Last updated Apr 3, 2026|Official source

Summary

The Board of Governors must write rules, working with the Council, that say which kinds or groups of U.S. and foreign nonbank financial companies can be exempt from supervision by the Board. In making those rules, the Board must take into account the factors listed in section 5323(a) and (b). The rules do not require the Board to supervise a company just because it fails to meet the exemption criteria. The Board must review the rules at least every 5 years and may update them. Any update cannot take effect until 2 years after its final publication. Within 30 days after final rules or any revision are issued, the Board Chair and the Council Chair must send a joint report to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives explaining the reasons for the exemptions and providing supporting empirical evidence.

Full Legal Text

Title 12, §5370

Banks and Banking — Source: USLM XML via OLRC

(a)The Board of Governors shall promulgate regulations on behalf of, and in consultation with, the Council setting forth the criteria for exempting certain types or classes of U.S. nonbank financial companies or foreign nonbank financial companies from supervision by the Board of Governors.

(b)In developing the criteria under subsection (a), the Board of Governors shall take into account the factors for consideration described in subsections (a) and (b) of section 5323 of this title in determining whether a U.S. nonbank financial company or foreign nonbank financial company shall be supervised by the Board of Governors.

(c)Nothing in this section shall be construed to require supervision by the Board of Governors of a U.S. nonbank financial company or foreign nonbank financial company, if such company does not meet the criteria for exemption established under subsection (a).

(d)(1)The Board of Governors shall, in consultation with the Council, review the regulations promulgated under subsection (a), not less frequently than every 5 years, and based upon the review, the Board of Governors may revise such regulations on behalf of, and in consultation with, the Council to update as necessary the criteria set forth in such regulations.

(2)No revisions under paragraph (1) shall take effect before the end of the 2-year period after the date of publication of such revisions in final form.

(e)The Chairman of the Board of Governors and the Chairperson of the Council shall submit a joint report to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives not later than 30 days after the date of the issuance in final form of regulations under subsection (a), or any subsequent revision to such regulations under subsection (d), as applicable. Such report shall include, at a minimum, the rationale for exemption and empirical evidence to support the criteria for exemption.

Reference

Citations & Metadata

Citation

12 U.S.C. § 5370

Title 12 — Banks and Banking

Last Updated

Apr 3, 2026

Release point: 119-73not60