The Financial Stability Oversight Council (FSOC) recently voted unanimously to propose new interpretive guidance implementing an activities-based approach to designating non-bank entity as a systemically-important financial institution (SIFI).
The new approach would require the council to assess the potential risks an entity posed to the financial marketplace, conduct a cost-benefit analysis of such a designation and assess the likelihood that a non-bank entity would fail prior to finalizing a non-bank SIFI designation.
Find out more details about proposed guidance.