Timothy R. McTaggart
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Ryan R. Tooley
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On April 3, 2012 at a public meeting, the Financial Stability Oversight Council (FSOC) finalized a rule that establishes a protocol for determining which non-bank financial companies (including private equity firms, insurance companies, and hedge funds) may be classified as a "systemically important financial institution" (SIFI). The final rule was passed pursuant to Section 113 of the Dodd-Frank Act, which authorizes the FSOC to require a non-bank to be supervised by the Federal Reserve Board and be subject to prudential standards, if the FSOC determines that material financial distress at the SIFI could pose a threat to financial stability.
More Resources on the Dodd-Frank Act
For additional information, please visit Pepper's Financial Services Reform Resource Center.