Insurance Capital Standards Clarification Act of 2014

Summary: (This measure has not been amended since it was passed by the Senate on June 3, 2014.  Insurance Capital Standards Clarification Act of 2014 - Amends the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) concerning establishment of minimum leverage 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 of the Federal Reserve System. States that federal banking agencies shall not be required to subject any person to such minimum capital requirements, to the extent that such person either: (1) acts in its capacity as a regulated insurance entity regulated by a state insurance regulator, or (2) is a regulated foreign subsidiary engaged in the business of insurance (including a regulated foreign affiliate of such subsidiary). States that a Board-supervised depository institution holding company or nonbank financial company engaged in the insurance business and regulated by either a state insurance regulator or the National Association of Insurance Commissioners, and which files its holding company financial statements using only Statutory Accounting Principles pursuant to state law, shall not be required by the Board, under this Act or the Home Owners' Loan Act (HOLA), to prepare such financial statements in accordance with Generally Accepted Accounting Principles. Declares that nothing in this Act shall: (1) limit Board authority to conduct any regulatory or supervisory activity of either a depository institution holding company or a non-bank financial company under Board jurisdiction, including the collecting or reporting of any information on an entity or group-wide basis; or (2) excuse the Board from its obligations to comply with Dodd-Frank requirements regarding examination of nonbank financial companies and HOLA requirements regarding examination of savings and loan holding companies.  

SECTION 1. 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) 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'--
            ``(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) 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.''.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.