H.R. 4566 amends Title I of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) to exempt nonbank financial institutions not under the supervision by the Board of Governors of the Federal Reserve System (Federal Reserve) from the Dodd-Frank Act's stress-testing requirements. Additionally, the bill allows the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) to issue regulations to require entities subject to their respective jurisdictions, referred to as “financial companies'” in Title I of the Dodd-Frank Act, that have total consolidated assets of more than $10 billion to conduct periodic analysis of the financial condition of such entities under adverse economic conditions.
The summary below was written by the Congressional Research Service, which is a nonpartisan division of the Library of Congress, and was published on Mar 15, 2018.
Alleviating Stress Test Burdens to Help Investors Act
This bill amends the Dodd-Frank Wall Street Reform and Consumer Protection Act to: (1) eliminate the Federal Reserve Board's authority to conduct stress tests of nonbank financial companies more than once annually, and (2) exempt certain financial companies not primarily regulated by either a federal banking agency or the Federal Housing Finance Agency from requirements to conduct stress tests.
The Securities and Exchange Commission and the Commodity Futures Trading Commission may issue separate regulations requiring specified financial companies with more than $10 billion in total consolidated assets to conduct financial-condition analyses.