SEC. 2. TRANSPARENCY AND ACCOUNTABILITY. 
Section 111 of the Financial Stability Act of 2010 
(12 U.S.C. 5321) is amended by adding at the end the 
following: 
‘‘(k) APPLICATION OF THE ADMINISTRATIVE PROCE-
DURE ACT.— 
‘‘(1) IN GENERAL.—The Council shall be an 
agency for purposes of subchapter II of chapter 5 
and chapter 7 of title 5, United States Code (com-
monly referred to as the ‘Administrative Procedure 
Act’). 
‘‘(2) 
NOTICE
OF
MEETINGS
BY
CHAIR-
PERSON.—The Chairperson shall be responsible for 
the public announcements required under section 
552b(e) of title 5, United States Code. 
‘‘(3) CLOSED MEETING VOTES.—A determina-
tion made by the Council under section 552b(c) of 
title 5, United States Code, may only be made by a 
majority vote of the voting members of the Council 
then serving. 
‘‘(4) TREATMENT AS REGULATORS OF FINAN-
CIAL INSTITUTIONS.—The Council and the Office of 
Financial Research shall each be an agency respon-
sible for the regulation or supervision of financial in-
stitutions for purposes of section 552(b)(8) of title 
5, United States Code. 
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‘‘(l) PUBLICATION OF REPORTS AND ANALYSES.— 
‘‘(1) IN GENERAL.—With respect to any final 
report, study, or analysis prepared by the Council, 
the Council shall promptly make available to the 
public, after distribution for review or use— 
‘‘(A) any data, analysis, and reports— 
‘‘(i) produced by the Council; and 
‘‘(ii) produced by member agencies or 
the Office of Financial Research to support 
the work of the Council; and 
‘‘(B) with respect to any findings in such 
report, study, or analysis, an explanation for 
such findings and any data used to substantiate 
such findings. 
‘‘(2) REDACTION OF EXEMPT INFORMATION.— 
Paragraph (1) shall not apply to any information 
that is exempt from disclosure under section 552(b) 
of title 5, United States Code. 
‘‘(m) REVISIONS
TO ANALYTIC FRAMEWORK
FOR 
DETERMINATIONS.—The Council shall make no revisions 
to any final published analytic framework for determina-
tions under this section or adopt or apply any new similar 
framework without providing prior public notice and an 
opportunity for comment, consistent with section 553 of 
title 5, United States Code.’’. 
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SEC. 3. SIFI DESIGNATION PROCESS. 
Section 113 of the Financial Stability Act of 2010 
(12 U.S.C. 5323) is amended— 
(1) in subsection (a)(2)— 
(A) in subparagraph (J), by striking ‘‘and’’ 
at the end; 
(B) by redesignating subparagraph (K) as 
subparagraph (L); and 
(C) by inserting after subparagraph (J) 
the following: 
‘‘(K) the appropriateness of the imposition 
of prudential standards as opposed to other 
forms of regulation to mitigate the identified 
risks; and’’; 
(2) in subsection (b)(2)— 
(A) in subparagraph (J), by striking ‘‘and’’ 
at the end; 
(B) by redesignating subparagraph (K) as 
subparagraph (L); 
(C) by inserting after subparagraph (J) 
the following: 
‘‘(K) the appropriateness of the imposition 
of prudential standards as opposed to other 
forms of regulation to mitigate the identified 
risks; and’’; and 
(D) in subsection (d)— 
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(i) in paragraph (1), by striking 
‘‘and’’ at the end; 
(ii) by redesignating paragraph (2) as 
paragraph (3); and 
(iii) by inserting after paragraph (1) 
the following: 
‘‘(2) provide written notice to the nonbank fi-
nancial company being reevaluated and afford such 
company an opportunity to submit written materials, 
within such time as the Council determines to be ap-
propriate (but which shall be not less than 30 days 
after the date of receipt by the company of such no-
tice), to contest the determination, including mate-
rials concerning whether, in the company’s view, ma-
terial financial distress at the company, or the na-
ture, scope, size, scale, concentration, interconnect-
edness, or mix of the activities of the company could 
pose a threat to the financial stability of the United 
States; and’’; 
(3) by amending subsection (e) to read as fol-
lows: 
‘‘(e) REQUIREMENTS PRIOR TO A FINAL DETER-
MINATION, NOTICE AND OPPORTUNITY FOR HEARING, 
AND FINAL DETERMINATION.— 
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‘‘(1) NOTICE OF IDENTIFICATION FOR INITIAL 
EVALUATION
AND
OPPORTUNITY
FOR
VOLUNTARY 
SUBMISSION.—Upon identifying a nonbank financial 
company for comprehensive analysis of the potential 
for the nonbank company to pose a threat to the fi-
nancial stability of the United States, the Council 
shall provide the nonbank financial company with— 
‘‘(A) written notice that explains with 
specificity the basis for so identifying the com-
pany; and 
‘‘(B) an opportunity to submit written ma-
terials for consideration by the Council as part 
of the Council’s initial evaluation of the risk 
profile and characteristics of the company. 
‘‘(2) REQUIREMENTS BEFORE MAKING A PRO-
POSED
DETERMINATION.—Before making a pro-
posed determination with respect to a nonbank fi-
nancial company under paragraph (3), the Council 
shall— 
‘‘(A) by a vote of not fewer than 2⁄3 of the 
voting members then serving, including an af-
firmative vote by the Chairperson, approve a 
resolution that identifies with specificity any 
risks to the financial stability of the United 
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pany of the notice described under clause 
(i)), to the Council to inform the Council’s 
consideration of the nonbank financial 
company for a proposed determination, in-
cluding materials concerning the com-
pany’s views as to whether it satisfies the 
standard for determination set forth in 
subsection (a) or (b), as applicable; and 
‘‘(iii) written notice when the Council 
deems its evidentiary record regarding 
such nonbank financial company to be 
complete. 
‘‘(3) PROPOSED DETERMINATION.— 
‘‘(A) VOTING.—The Council may, by a 
vote of not fewer than 2⁄3 of the voting members 
then serving, including an affirmative vote by 
the Chairperson, propose to make a determina-
tion in accordance with the provisions of sub-
section (a) or (b), as applicable, with respect to 
a nonbank financial company. 
‘‘(B) DEADLINE FOR MAKING A PROPOSED 
DETERMINATION.—With respect to a nonbank 
financial company provided with a written no-
tice under paragraph (2)(C)(i), if the Council 
does not provide the company with the written 
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notice of a proposed determination described 
under paragraph (4) within the 180-day period 
following the date on which the Council notifies 
the company under paragraph (2)(C) that the 
evidentiary record is complete, the Council may 
not make such a proposed determination with 
respect to such company unless the Council re-
peats the procedures described under paragraph 
(2). 
‘‘(C) REVIEW OF ACTIONS OF PRIMARY FI-
NANCIAL REGULATORY AGENCY.—With respect 
to a nonbank financial company with a primary 
financial regulatory agency, the Council may 
not vote under subparagraph (A) to make a 
proposed determination unless— 
‘‘(i) the Council determines that any 
proposed regulations or other regulatory 
actions taken by the primary financial reg-
ulatory agency after receipt of the resolu-
tion described under paragraph (2)(A) are 
insufficient to mitigate or prevent the risks 
identified in the resolution; 
‘‘(ii) the primary financial regulatory 
agency has notified the Council that the 
agency has no proposed regulations or 
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other regulatory actions to mitigate or pre-
vent the risks identified in the resolution; 
or 
‘‘(iii) the period allowed by the Coun-
cil under paragraph (2)(B) has elapsed 
and the primary financial regulatory agen-
cy has taken no action in response to the 
resolution. 
‘‘(4) NOTICE OF PROPOSED DETERMINATION.— 
The Council shall provide to a nonbank financial 
company written notice of a proposed determination 
of the Council, including an explanation of the basis 
of the proposed determination of the Council, that a 
nonbank financial company shall be supervised by 
the Board of Governors and shall be subject to pru-
dential standards in accordance with this title, an 
explanation of the specific risks to the financial sta-
bility of the United States presented by the nonbank 
financial company, and a detailed explanation of why 
other regulatory action by the company’s primary fi-
nancial regulatory agency, if any, is insufficient to 
mitigate or prevent such risk. 
‘‘(5) HEARING.— 
‘‘(A) IN
GENERAL.—Not later than 30 
days after the date of receipt of any notice of 
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a proposed determination under paragraph (4), 
the nonbank financial company may request, in 
writing, an opportunity for a written or oral 
hearing before the Council to contest the pro-
posed determination, including the opportunity 
to present a plan to modify the company’s busi-
ness, structure, or operations in order to miti-
gate the risks identified in the notice, and 
which plan shall also include any steps the com-
pany expects to take during the implementation 
period to mitigate such risks. 
‘‘(B) GRANT OF HEARING.—Upon receipt 
of a timely request, the Council shall fix a time 
(not earlier than 30 days after the date of re-
ceipt of the request) and place at which such 
company may appear, personally or through 
counsel, to— 
‘‘(i) submit written materials (which 
may include a plan to modify the com-
pany’s business, structure, or operations); 
or 
‘‘(ii) provide oral testimony and oral 
argument. 
‘‘(6) COUNCIL
CONSIDERATION
OF
COMPANY 
PLAN.— 
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‘‘(A) IN GENERAL.—If a nonbank financial 
company submits a plan in accordance with 
paragraph (5), the Council shall, prior to mak-
ing a final determination— 
‘‘(i) consider whether the plan, if im-
plemented, would mitigate the risks identi-
fied in the notice under paragraph (4); and 
‘‘(ii) provide the nonbank financial 
company an opportunity to revise the plan 
after consultation with the Council. 
‘‘(B) VOTING.—Approval by the Council of 
a plan submitted under paragraph (5) or re-
vised under subparagraph (A)(ii) shall require a 
vote of not fewer than 2⁄3 of the voting members 
then serving, including an affirmative vote by 
the Chairperson. 
‘‘(C) 
IMPLEMENTATION
OF
APPROVED 
PLAN.—With respect to a nonbank financial 
company’s plan approved by the Council under 
subparagraph (B), the company shall have one 
year to implement the plan, except that the 
Council, in its sole discretion and upon request 
from the nonbank financial company, may 
grant one or more extensions of the implemen-
tation period. 
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‘‘(D) OVERSIGHT OF IMPLEMENTATION.— 
‘‘(i) PERIODIC REPORTS.—The Coun-
cil, acting through the Office of Financial 
Research, may require the submission of 
periodic reports from a nonbank financial 
company for the purpose of evaluating the 
company’s progress in implementing a plan 
approved by the Council under subpara-
graph (B). 
‘‘(ii) INSPECTIONS.—The Council may 
direct the primary financial regulatory 
agency of a nonbank financial company 
(or, if none, the Board of Governors) to in-
spect the company for the purpose of eval-
uating the company’s progress in imple-
menting the company’s plan. 
‘‘(E) 
AUTHORITY
TO
RESCIND
AP-
PROVAL.— 
‘‘(i) IN GENERAL.—During the imple-
mentation period described under subpara-
graph (C), including any extensions grant-
ed by the Council, the Council shall retain 
the authority to rescind its approval of the 
plan if the Council finds, by a vote of not 
fewer than 2⁄3 of the voting members then 
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serving, including an affirmative vote by 
the Chairperson, that the company’s imple-
mentation of the plan is no longer suffi-
cient to mitigate or prevent the risks iden-
tified in the resolution described under 
paragraph (2)(A). 
‘‘(ii) FINAL DETERMINATION VOTE.— 
The Council may proceed to a vote on final 
determination under subsection (a) or (b), 
as applicable, not earlier than 10 days 
after providing the nonbank financial com-
pany with written notice that the Council 
has rescinded the approval of the com-
pany’s plan pursuant to clause (i). 
‘‘(F) ACTIONS AFTER IMPLEMENTATION.— 
‘‘(i) EVALUATION
OF
IMPLEMENTA-
TION.—After the end of the implementa-
tion period described under subparagraph 
(C), including any extensions granted by 
the Council, the Council shall consider 
whether the plan, as implemented by the 
nonbank financial company, adequately 
mitigates or prevents the risks identified in 
the resolution described under paragraph 
(2)(A). 
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‘‘(ii) VOTING.—If, after performing 
an evaluation under clause (i), not fewer 
than 2⁄3 of the voting members of the 
Council then serving, including an affirma-
tive vote by the Chairperson, determine 
that the plan, as implemented, adequately 
mitigates or prevents the identified risks, 
the Council shall not make a final deter-
mination under subsection (a) or (b), as 
applicable, with respect to the nonbank fi-
nancial company and shall notify the com-
pany of the Council’s decision to take no 
further action. 
‘‘(7) FINAL COUNCIL DECISIONS.— 
‘‘(A) IN
GENERAL.—Not later than 90 
days after the date of a hearing under para-
graph (5), the Council shall notify the nonbank 
financial company of— 
‘‘(i) a final determination under sub-
section (a) or (b), as applicable; 
‘‘(ii) the Council’s approval of a plan 
submitted by the nonbank financial com-
pany under paragraph (5) or revised under 
paragraph (6); or 
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‘‘(iii) the Council’s decision to take no 
further action with respect to the nonbank 
financial company. 
‘‘(B) EXPLANATORY STATEMENT.—A final 
determination of the Council, under subsection 
(a) or (b), shall contain a statement of the basis 
for the decision of the Council, including the 
reasons why the Council rejected any plan by 
the nonbank financial company submitted under 
paragraph (5) or revised under paragraph 
(6).’’; and 
(4) by adding at the end the following: 
‘‘(j) PERIODIC REVIEW OF INDIVIDUAL DETERMINA-
TION.— 
‘‘(1) REVIEW.—Every 5 years after the date of 
a final determination with respect to a nonbank fi-
nancial company under subsection (a) or (b), as ap-
plicable, the nonbank financial company may submit 
a written request to the Council for a reevaluation 
of such determination. Upon receipt of such a re-
quest, the Council shall conduct a reevaluation of 
such determination and hold a vote on whether to 
rescind such determination. 
‘‘(2) PROCEDURES.— 
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‘‘(A) IN
GENERAL.—Upon receipt of a 
written request under paragraph (1), the Coun-
cil shall fix a time (not earlier than 30 days 
after the date of receipt of the request) and 
place at which such company may appear, per-
sonally or through counsel, to— 
‘‘(i) submit written materials (which 
may include a plan to modify the com-
pany’s business, structure, or operations, 
which shall specify the length of the imple-
mentation period); or 
‘‘(ii) provide oral testimony and oral 
argument before the members of the Coun-
cil. 
‘‘(B) TREATMENT OF PLAN.—If the com-
pany submits a plan in accordance with sub-
paragraph (A)(i), the Council shall consider 
whether the plan, if implemented, would cause 
the company to no longer meet the standards 
for a final determination under subsection (a) 
or (b), as applicable. The Council shall provide 
the nonbank financial company an opportunity 
to revise the plan after consultation with the 
Council. 
‘‘(3) RESCISSION OF DETERMINATION.— 
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‘‘(A) IN GENERAL.—If the Council, by a 
vote of not fewer than 2⁄3 of the voting members 
then serving, including an affirmative vote by 
the Chairperson, determines under this sub-
section that a nonbank financial company no 
longer meets the standards for a final deter-
mination under subsection (a) or (b), as appli-
cable, the Council shall rescind such determina-
tion. 
‘‘(B) APPROVAL OF COMPANY PLAN.—Ap-
proval by the Council of a plan submitted or re-
vised in accordance with paragraph (2) shall re-
quire a vote of not fewer than 2⁄3 of the voting 
members then serving, including an affirmative 
vote by the Chairperson. If such plan is ap-
proved by the Council, the company shall imple-
ment the plan during the period identified in 
the plan, except that the Council, in its sole dis-
cretion and upon request from the company, 
may grant one or more extensions of the imple-
mentation period. After the end of the imple-
mentation period, including any extensions 
granted by the Council, the Council shall pro-
ceed to a vote as described under subparagraph 
(A). 
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‘‘(k) PERIODIC ASSESSMENT
OF
THE IMPACT
OF 
DESIGNATIONS.— 
‘‘(1) ASSESSMENT.—Every five years after the 
date of enactment of this section, the Council 
shall— 
‘‘(A) conduct a study of the Council’s de-
terminations that nonbank financial companies 
shall be supervised by the Board of Governors 
and shall be subject to prudential standards; 
and 
‘‘(B) comprehensively assess the impact of 
such determinations on the companies for which 
such determinations were made and the wider 
economy, including whether such determina-
tions are having the intended result of improv-
ing the financial stability of the United States. 
‘‘(2) REPORT.—Not later than 90 days after 
completing a study required under paragraph (1), 
the Council shall issue a report to the Congress 
that— 
‘‘(A) describes all findings and conclusions 
made by the Council in carrying out such study; 
and 
‘‘(B) identifies whether any of the Coun-
cil’s determinations should be rescinded or 
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whether related regulations or regulatory guid-
ance should be modified, streamlined, expanded, 
or repealed.’’. 
SEC. 4. RULE OF CONSTRUCTION. 
None of the amendments made by this Act may be 
construed as limiting the Financial Stability Oversight 
Counsel’s emergency powers under section 113(f) of the 
Financial Stability Act of 2010 (12 U.S.C. 5323(f)). 
Æ 
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