Financial Stability Oversight Council: FSOC Finalizes Changes to Nonbank SIFI Designation Guidance

Sullivan & Cromwell LLP - January 2, 2020
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On December 4, 2019, the Financial Stability Oversight Council (the “Council”) voted unanimously to finalize amendments to its interpretive guidance (the “Final Guidance”) on designating nonbank financial companies as “systemically important financial institutions” (“SIFIs”).  The Final Guidance, which will replace the Council’s interpretive guidance on SIFI designations issued in April 2012, implements an “activities-based” approach to identifying and addressing potential risks to financial stability, and is intended to enhance the “analytical rigor and transparency” of the Council’s process for designating SIFIs.