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H.R. 4566 (115th): Alleviating Stress Test Burdens to Help Investors Act


The text of the bill below is as of Mar 20, 2018 (Passed the House).

Summary of this bill

Source: Republican Policy Committee

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.


I

115th CONGRESS

2d Session

H. R. 4566

IN THE HOUSE OF REPRESENTATIVES

AN ACT

To amend the Dodd-Frank Wall Street Reform and Consumer Protection Act to provide relief to nonbanks from certain stress test requirements under such Act.

1.

Short title

This Act may be cited as the Alleviating Stress Test Burdens to Help Investors Act.

2.

Stress test relief for nonbanks

Section 165(i) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (12 U.S.C. 5365(i)) is amended—

(1)

in paragraph (1)(B)—

(A)

by redesignating clauses (ii) through (v) as clauses (iii) through (vi), respectively;

(B)

by inserting after clause (i) the following:

(ii)

may conduct the evaluation required by this subsection utilizing alternatives to the capital adequacy test described in subparagraph (A), as the Board may determine appropriate;

;

(C)

in clause (iii), as so redesignated, by inserting before the semicolon the following:

, provided that such tests of any nonbank financial company—

(I)

are requested by a majority vote of the Council;

(II)

are conducted in accordance with the company’s business model, including by utilizing alternatives to the capital adequacy test described in subparagraph (A), as the Board may determine appropriate; and

(III)

are not already required by the company’s Federal primary financial regulatory agency

; and

(D)

in clause (vi), as so redesignated, by striking clause (ii) and inserting clause (iii); and

(2)

in paragraph (2)—

(A)

in subparagraph (A), by striking are regulated by a primary Federal financial regulatory agency and inserting: whose primary financial regulatory agency is a Federal banking agency or the Federal Housing Finance Agency;

(B)

in subparagraph (C), by striking Each Federal primary financial regulatory agency and inserting Each Federal banking agency and the Federal Housing Finance Agency; and

(C)

by adding at the end the following:

(D)

SEC and CFTC

The Securities and Exchange Commission and the Commodity Futures Trading Commission may each issue regulations requiring financial companies with respect to which they are the primary financial regulatory agency to conduct periodic analyses of the financial condition, including available liquidity, of such companies under adverse economic conditions.

.

3.

Rule of construction

Nothing in this Act shall be construed to limit the authority of the Financial Stability Oversight Council under section 120 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (12 U.S.C. 5330).

Passed the House of Representatives March 20, 2018.

Karen L. Haas,

Clerk.