The Federal Reserve announced a six-month delay for the implementation of its revised framework for determining control of a company by another company under the Bank Holding Company Act and the Home Owners’ Loan Act. The rule—which was originally set to take effect April 1—establishes a tiered structure for how the fed will make control determinations. The rule’s new effective date is Sept. 30.
ABA supported the Fed’s proposal and has been involved in implementation discussions with Fed staff in recent days. The association will use the additional time to constructively address issues that might arise as a result of the revised control framework, particularly those related to certain relationships and investments.