Sec. 10. Improvements to the Financial Institutions Examination Council
1,439 words·~7 min read·
/bill/113/hr/3928/ih/section-10A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 1008 of the Federal Financial Institutions Examination Council Act of 1978 ( 12 U.S.C. 3305 ) is amended by adding at the end the following: Before issuing any regulation, the Council shall— clearly identify the nature and source of the problem that the proposed regulation is designed to address, as well as assess the significance of that problem, to enable assessment of whether any new regulation is warranted; assess the costs and benefits, both qualitative and quantitative, of the intended regulation and propose or adopt a regulation only on a reasoned determination that the benefits of the intended regulation outweigh the costs of the regulation; identify and assess available alternatives to the regulation that were considered, including modification of an existing regulation, together with an explanation of why the regulation meets the regulatory objectives more effectively than the alternatives; and ensure that any regulation is accessible, consistent, written in plain language, and easy to understand and shall measure, and seek to improve, the actual results of regulatory requirements.
In deciding whether and how to regulate, the Council shall assess the costs and benefits of available regulatory alternatives, including the alternative of not regulating, and choose the approach that maximizes net benefits. Specifically, the Council shall— evaluate whether, consistent with obtaining regulatory objectives, the regulation is tailored to impose the least burden on society, including market participants, individuals, businesses of differing sizes, and other entities (including State and local governmental entities), taking into account, to the extent practicable, the cumulative costs of regulations; and evaluate whether the regulation is inconsistent, incompatible, or duplicative of other Federal regulations.
In addition, in making a reasoned determination of the costs and benefits of a potential regulation, the Council shall, to the extent that each is relevant to the particular proposed regulation, take into consideration the impact of the regulation on— investor choice; market liquidity in the securities markets; small businesses; economic growth; cost and access to capital; market stability; global competitiveness; job creation; rate of inflation; and employment levels. The Council shall explain in its final rule the nature of comments that it received, including those from the industry or consumer groups concerning the potential costs or benefits of the proposed rule or proposed rule change, and shall provide a response to those comments in its final rule, including an explanation of any changes that were made in response to those comments and the reasons that the Council did not incorporate those industry group concerns related to the potential costs or benefits in the final rule.
Whenever the Council adopts or amends a regulation designated as a major rule within the meaning of section 804(2) of title 5, United States Code, it shall state, in its adopting release, the following: The purposes and intended consequences of the regulation. Appropriate post-implementation quantitative and qualitative metrics to measure the economic impact of the regulation and to measure the extent to which the regulation has accomplished the stated purposes. The assessment plan that will be used, consistent with the requirements of subparagraph (B), to assess whether the regulation has achieved the stated purposes.
Any reasonably foreseeable indirect effects that may result from the regulation. The assessment plan required under this paragraph shall consider the costs, benefits, and intended and unintended consequences of the regulation. The plan shall specify the data to be collected, the methods for collection and analysis of the data and a date for completion of the assessment. The assessment plan shall include an analysis of any jobs added or lost as a result of the regulation, differentiating between public and private sector jobs.
The Council shall, not later than 2 years after the publication of the adopting release, cause the assessment report to be published in the Federal Register for notice and comment. If the Council determines, at least 90 days before such date, that an extension is necessary, the Council shall public a notice of such extension in the Federal Register, along with the specific reasons why the extension is necessary. Any material modification of the plan, as necessary to assess unforeseen aspects or consequences of the regulation, shall be promptly published in the Federal Register for notice and comment.
If the Council has published its assessment plan for notice and comment, specifying the data to be collected and method of collection, at least 30 days prior to adoption of a final regulation or amendment, such collection of data shall not be subject to the notice and comment requirements in section 3506(c) of title 44, United States Code (commonly referred to as the Paperwork Reduction Act). Any material modifications of the plan that require collection of data not previously published for notice and comment shall also be exempt from such requirements if the Council has published notice for comment in the Federal Register of the additional data to be collected, at least 30 days prior to initiation of data collection.
Not later than 180 days after publication of the assessment report in the Federal Register, the Council shall issue for notice and comment a proposal to amend or rescind the regulation, or publish a notice that the Council has determined that no action will be taken on the regulation. Such a notice will be deemed a final agency action. Solely as used in this subsection, the term regulation — means a statement of general applicability and future effect that is designed to implement, interpret, or prescribe law or policy or to describe the procedure or practice requirements of the Council, including rules, orders of general applicability, interpretive releases, and other statements of general applicability that the Council intends to have the force and effect of law; and does not include— a regulation issued in accordance with the formal rulemaking provisions of section 556 or 557 of title 5, United States Code; a regulation that is limited to the organization, management, or personnel matters of the Council; a regulation promulgated pursuant to statutory authority that expressly prohibits compliance with this provision; and a regulation that is certified by the Council to be an emergency action, if such certification is published in the Federal Register. .
Section 1008 of the Federal Financial Institutions Examination Council Act of 1978 ( 12 U.S.C. 3305 ), as amended by subsection (a), is further amended by adding at the end the following: The members and employees of the Council shall be subject to the provisions under section 4401.102 of title 5, Code of Federal Regulations, to the same extent as such provisions apply to an employee of the Securities and Exchange Commission. The members and employees of the Council shall— disclose all brokerage accounts that they maintain, as well as those in which they control trading or have a financial interest (including managed accounts, trust accounts, investment club accounts, and the accounts of spouses or minor children who live with the member or employee); and with respect to any securities account that the member or employee is required to disclose to the Council, authorize their brokers and dealers to send duplicate account statements directly to Council.
The members and employees of the Council shall be subject to the prohibitions related to outside employment and activities described under section 4401.103(c) of title 5, Code of Federal Regulations, to the same extent as such prohibitions apply to an employee of the Securities and Exchange Commission. The members and employees of the Council shall be subject to— the employee responsibilities and conduct regulations of the Office of Personnel Management under part 735 of title 5, Code of Federal Regulations; the canons of ethics contained in subpart C of part 200 of title 17, Code of Federal Regulations, to the same extent as such subpart applies to the employees of the Securities and Exchange Commission; and the regulations concerning the conduct of members and employees and former members and employees contained in subpart M of part 200 of title 17, Code of Federal Regulations, to the same extent as such subpart applies to the employees of the Securities and Exchange Commission.
For purposes of the financial disclosure requirements under part 2634 of title 5, Code of Federal Regulations, an employee of the Council shall be deemed a public filer if the employee is an attorney, accountant, examiner, auditor, investigator, or deals with information technology security. The Council shall make publicly available, on the website of the Council, a searchable database that contains the names of all Members and employees of the Council, and— the yearly salary information for such individuals, along with any non-salary compensation received by such individuals; and any financial disclosures required to be made by such individuals. .
Connectionstraces to 1
Traces to 1 document
U.S. Code
Citation graph
cites case law
Sec. 10
Improvements to the Financial Institutions Examination Council
Cites 1Cited by 0 across 0 sources