Fed Finalizes Dodd-Frank Rule On Nonbank Securities Oversight

Law360, New York (May 30, 2012, 4:56 PM EDT) -- The Federal Reserve on Wednesday approved a rule outlined in the Dodd-Frank Act that allows nonbanks that own securities brokers or dealers to elect to be supervised by the central bank instead of the U.S. Securities and Exchange Commission.

Under the rule, these nonbanks, known as securities holding companies, must provide detailed information about their organizational structure, capital, financial condition and institutional controls to the Fed before their election can be approved. Upon their registration with the Fed — which would become effective within 45 days...
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