[113th Congress Public Law 279]
[From the U.S. Government Publishing Office]
[[Page 128 STAT. 3017]]
Public Law 113-279
113th Congress
An Act
To clarify the application of certain leverage and risk-based
requirements under the Dodd-Frank Wall Street Reform and Consumer
Protection Act. <<NOTE: Dec. 18, 2014 - [S. 2270]>>
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, <<NOTE: Insurance
Capital Standards Clarification Act of 2014.>>
SECTION 1. <<NOTE: 12 USC 5301 note.>> SHORT TITLE.
This Act may be cited as the ``Insurance Capital Standards
Clarification Act of 2014''.
SEC. 2. CLARIFICATION OF APPLICATION OF LEVERAGE AND RISK-BASED
CAPITAL REQUIREMENTS.
Section 171 of the Dodd-Frank Wall Street Reform and Consumer
Protection Act (12 U.S.C. 5371) is amended--
(1) <<NOTE: Definitions.>> in subsection (a), by adding at
the end the following:
``(4) Business of insurance.--The term `business of
insurance' has the same meaning as in section 1002(3).
``(5) Person regulated by a state insurance regulator.--The
term `person regulated by a State insurance regulator' has the
same meaning as in section 1002(22).
``(6) Regulated foreign subsidiary and regulated foreign
affiliate.--The terms `regulated foreign subsidiary' and
`regulated foreign affiliate' mean a person engaged in the
business of insurance in a foreign country that is regulated by
a foreign insurance regulatory authority that is a member of the
International Association of Insurance Supervisors or other
comparable foreign insurance regulatory authority as determined
by the Board of Governors following consultation with the State
insurance regulators, including the lead State insurance
commissioner (or similar State official) of the insurance
holding company system as determined by the procedures within
the Financial Analysis Handbook adopted by the National
Association of Insurance Commissioners, where the person, or its
principal United States insurance affiliate, has its principal
place of business or is domiciled, but only to the extent that--
``(A) such person acts in its capacity as a
regulated insurance entity; and
``(B) the Board of Governors does not determine that
the capital requirements in a specific foreign
jurisdiction are inadequate.
``(7) Capacity as a regulated insurance entity.--The term
`capacity as a regulated insurance entity'--
[[Page 128 STAT. 3018]]
``(A) includes any action or activity undertaken by
a person regulated by a State insurance regulator or a
regulated foreign subsidiary or regulated foreign
affiliate of such person, as those actions relate to the
provision of insurance, or other activities necessary to
engage in the business of insurance; and
``(B) does not include any action or activity,
including any financial activity, that is not regulated
by a State insurance regulator or a foreign agency or
authority and subject to State insurance capital
requirements or, in the case of a regulated foreign
subsidiary or regulated foreign affiliate, capital
requirements imposed by a foreign insurance regulatory
authority.''; and
(2) by adding at the end the following new subsection:
``(c) Clarification.--
``(1) In general.--In establishing the minimum leverage
capital requirements and minimum risk-based capital requirements
on a consolidated basis for a depository institution holding
company or a nonbank financial company supervised by the Board
of Governors as required under paragraphs (1) and (2) of
subsection (b), the appropriate Federal banking agencies shall
not be required to include, for any purpose of this section
(including in any determination of consolidation), a person
regulated by a State insurance regulator or a regulated foreign
subsidiary or a regulated foreign affiliate of such person
engaged in the business of insurance, to the extent that such
person acts in its capacity as a regulated insurance entity.
``(2) Rule of construction on board's authority.--This
subsection shall not be construed to prohibit, modify, limit, or
otherwise supersede any other provision of Federal law that
provides the Board of Governors authority to issue regulations
and orders relating to capital requirements for depository
institution holding companies or nonbank financial companies
supervised by the Board of Governors.
``(3) Rule of construction on accounting principles.--
``(A) In general.--A depository institution holding
company or nonbank financial company supervised by the
Board of Governors of the Federal Reserve that is also a
person regulated by a State insurance regulator that is
engaged in the business of insurance that files
financial statements with a State insurance regulator or
the National Association of Insurance Commissioners
utilizing only Statutory Accounting Principles in
accordance with State law, shall not be required by the
Board under the authority of this section or the
authority of the Home Owners' Loan Act to prepare such
financial statements in accordance with Generally
Accepted Accounting Principles.
``(B) Preservation of authority.--Nothing in
subparagraph (A) shall limit the authority of the Board
under any other applicable provision of law to conduct
any regulatory or supervisory activity of a depository
institution holding company or non-bank financial
company supervised by the Board of Governors, including
the collection or reporting of any information on an
entity or group-wide basis. Nothing in this paragraph
shall excuse the Board from its obligations to comply
with section 161(a)
[[Page 128 STAT. 3019]]
of the Dodd-Frank Wall Street Reform and Consumer
Protection Act (12 U.S.C. 5361(a)) and section 10(b)(2)
of the Home Owners' Loan Act (12 U.S.C. 1467a(b)(2)), as
appropriate.''.
Approved December 18, 2014.
LEGISLATIVE HISTORY--S. 2270:
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CONGRESSIONAL RECORD, Vol. 160 (2014):
June 3, considered and passed Senate.
Dec. 10, considered and passed House.
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