12 USC 1850a - Securities holding companies

U.S Code last checked for updates: Apr 27, 2024

§ 1850a.

Securities holding companies

(a)

Definitions

In this section—

(1)

the term “associated person of a securities holding company” means a person directly or indirectly controlling, controlled by, or under common control with, a securities holding company;

(2)

the term “foreign bank” has the same meaning as in section 3101(7) of this title;

(3)

the term “insured bank” has the same meaning as in section 1813 of this title;

(4)

the term “securities holding company”—

(A)

means—

(i)

a person (other than a natural person) that owns or controls 1 or more brokers or dealers registered with the Commission; and

(ii)

the associated persons of a person described in clause (i); and

(B)

does not include a person that is—

(i)

a nonbank financial company supervised by the Board under title I; 1

 See References in Text note below.

(ii)

an insured bank (other than an institution described in subparagraphs 2

 So in original. Probably should be “subparagraph”.

(D), (F), or (H) of section 2(c)(2) of the Bank Holding Company Act of 1956 (12 U.S.C. 1841(c)(2)) 3

 So in original. Another closing parenthesis probably should appear.

or a savings association;

(iii)

an affiliate of an insured bank (other than an institution described in subparagraphs ² (D), (F), or (H) of section 2(c)(2) of the Bank Holding Company Act of 1956 (12 U.S.C. 1841(c)(2)) ³ or an affiliate of a savings association;

(iv)

a foreign bank, foreign company, or company that is described in section 3106(a) of this title;

(v)

a foreign bank that controls, directly or indirectly, a corporation chartered under section 25A of the Federal Reserve Act (12 U.S.C. 611 et seq.); or

(vi)

subject to comprehensive consolidated supervision by a foreign regulator;

(5)

the term “supervised securities holding company” means a securities holding company that is supervised by the Board of Governors under this section; and

(6)

the terms “affiliate”, “bank”, “bank holding company”, “company”, “control”, “savings association”, and “subsidiary” have the same meanings as in section 2 of the Bank Holding Company Act of 1956 [12 U.S.C. 1841].

(b)

Supervision of a securities holding company not having a bank or savings association affiliate

(1)

In general

(2)

Registration as a supervised securities holding company

(A)

Registration

(B)

Effective date

(c)

Supervision of securities holding companies

(1)

Recordkeeping and reporting

(A)

Recordkeeping and reporting required

(B)

Form and contents

(i)

In general

(I)

be prepared in such form and according to such specifications (including certification by a registered public accounting firm), as the Board of Governors may require; and

(II)

be provided promptly to the Board of Governors at any time, upon request by the Board of Governors.

(ii)

Contents

Records and reports required to be made, furnished, or kept under this paragraph may include—

(I)

a balance sheet or income statement of the supervised securities holding company or an affiliate of a supervised securities holding company;

(II)

an assessment of the consolidated capital and liquidity of the supervised securities holding company;

(III)

a report by an independent auditor attesting to the compliance of the supervised securities holding company with the internal risk management and internal control objectives of the supervised securities holding company; and

(IV)

a report concerning the extent to which the supervised securities holding company or affiliate has complied with the provisions of this section and any regulations prescribed and orders issued under this section.

(2)

Use of existing reports

(A)

In general

(B)

Availability

(3)

Examination authority

(A)

Focus of examination authority

(B)

Deference to other examinations

(d)

Capital and risk management

(1)

In general

(2)

Differentiation

(3)

Content

Any standards imposed on a supervised securities holding company under this subsection shall take into account—

(A)

the differences among types of business activities carried out by the supervised securities holding company;

(B)

the amount and nature of the financial assets of the supervised securities holding company;

(C)

the amount and nature of the liabilities of the supervised securities holding company, including the degree of reliance on short-term funding;

(D)

the extent and nature of the off-balance sheet exposures of the supervised securities holding company;

(E)

the extent and nature of the transactions and relationships of the supervised securities holding company with other financial companies;

(F)

the importance of the supervised securities holding company as a source of credit for households, businesses, and State and local governments, and as a source of liquidity for the financial system; and

(G)

the nature, scope, and mix of the activities of the supervised securities holding company.

(4)

Notice

(e)

Other provisions of law applicable to supervised securities holding companies

(1)

Federal Deposit Insurance Act

(2)

Bank Holding Company Act of 1956

(Pub. L. 111–203, title VI, § 618, July 21, 2010, 124 Stat. 1616.)

cite as: 12 USC 1850a