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Can you summarize 12 CFR Part 242?
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM > DEFINITIONS RELATING TO TITLE I OF THE DODD-FRANK ACT (REGULATION PP)
Short Summary
This document, part of the Code of Federal Regulations, issued by the Board of Governors of the Federal Reserve System, establishes the criteria for determining if a company is predominantly engaged in financial activities as required under section 102(b) of the Dodd-Frank Act. It also provides definitions for ‘significant nonbank financial company’ and ‘significant bank holding company’ for purposes of the designation of nonbank financial companies by the Financial Stability Oversight Council and the credit exposure reports required to be filed by certain entities. The document applies to companies subject to Title I of the Dodd-Frank Act, nonbank financial companies supervised by the Board, and bank holding companies or foreign banks subject to the Bank Holding Company Act. It defines various terms such as ‘applicable accounting standards’, ‘foreign nonbank financial company’, ’nonbank financial company supervised by the Board’, ‘State’, and ‘U.S. nonbank financial company’. The document also specifies the criteria for determining if a company is predominantly engaged in financial activities based on its consolidated annual gross financial revenues and consolidated total financial assets. It provides definitions for consolidated annual gross financial revenues, consolidated total financial assets, and activities that are financial in nature. Additionally, the document defines ‘significant nonbank financial company’ and ‘significant bank holding company’ based on their total consolidated assets. It references the reporting forms used by the Federal Reserve to gather financial information. No specific exemptions or penalties are mentioned in this document.
Whom does it apply to?
Companies subject to Title I of the Dodd-Frank Act, nonbank financial companies supervised by the Board, bank holding companies or foreign banks subject to the Bank Holding Company Act
What does it govern?
Criteria for determining if a company is predominantly engaged in financial activities, definitions of 'significant nonbank financial company' and 'significant bank holding company' for purposes of designation, reporting requirements for certain entities
What are exemptions?
No specific exemptions are mentioned.
What are the Penalties?
No specific penalties are mentioned.
Jurisdiction
U.S. Federal Government