12 USC 5330 - Additional standards applicable to activities or practices for financial stability purposes

U.S Code last checked for updates: May 04, 2024

§ 5330.

Additional standards applicable to activities or practices for financial stability purposes

(a)

In general

(b)

Procedure for recommendations to regulators

(1)

Notice and opportunity for comment

(2)

Criteria

The new or heightened standards and safeguards for a financial activity or practice recommended under paragraph (1)—

(A)

shall take costs to long-term economic growth into account; and

(B)

may include prescribing the conduct of the activity or practice in specific ways (such as by limiting its scope, or applying particular capital or risk management requirements to the conduct of the activity) or prohibiting the activity or practice.

(c)

Implementation of recommended standards

(1)

Role of primary financial regulatory agency

(A)

In general

(B)

Rule of construction

(2)

Imposition of standards

(d)

Report to Congress

The Council shall report to Congress on—

(1)

any recommendations issued by the Council under this section;

(2)

the implementation of, or failure to implement, such recommendation on the part of a primary financial regulatory agency; and

(3)

in any case in which no primary financial regulatory agency exists for the nonbank financial company conducting financial activities or practices referred to in subsection (a), recommendations for legislation that would prevent such activities or practices from threatening the stability of the financial system of the United States.

(e)

Effect of rescission of identification

(1)

Notice

(2)

Determination of primary financial regulatory agency to continue

(A)

In general

(B)

Appeal process

(Pub. L. 111–203, title I, § 120, July 21, 2010, 124 Stat. 1408.)

cite as: 12 USC 5330