SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Financial Stability 
Oversight Council Improvement Act of 2017’’. 
SEC. 2. 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 
(3) by amending subsection (d) to read as fol-
lows: 
‘‘(d) REEVALUATION AND RESCISSION.— 
‘‘(1) ANNUAL
REEVALUATION.—Not less fre-
quently than annually, the Council shall reevaluate 
each determination made under subsections (a) and 
(b) with respect to a nonbank financial company su-
pervised by the Board of Governors and shall— 
‘‘(A) provide written notice to the nonbank 
financial company being reevaluated and afford 
such company an opportunity to submit written 
materials, within such time as the Council de-
termines to be appropriate (but which shall be 
not less than 30 days after the date of receipt 
by the company of such notice), to contest the 
determination, including materials concerning 
whether, in the company’s view, material finan-
cial distress at the company, or the nature, 
scope, size, scale, concentration, interconnected-
ness, or mix of the activities of the company 
could pose a threat to the financial stability of 
the United States;
‘‘(B) provide an opportunity for the 
nonbank financial company to meet with the 
Council to present the information described in 
subparagraph (A); and 
‘‘(C) if the Council does not rescind the de-
termination, provide notice to the nonbank fi-
nancial company, its primary financial regu-
latory agency and the primary financial regu-
latory agency of any of the company’s signifi-
cant subsidiaries of the reasons for the Coun-
cil’s decision, which notice shall address with 
specificity how the Council assessed the mate-
rial factors presented by the company under 
subparagraphs (A) and (B). 
‘‘(2) PERIODIC REEVALUATION.— 
‘‘(A) REVIEW.—Every 5 years after the 
date of a final determination with respect to a 
nonbank financial company under subsection 
(a) or (b), as applicable, the nonbank financial 
company may submit a written request to the 
Council for a reevaluation of such determina-
tion. Upon receipt of such a request, the Coun-
cil shall conduct a reevaluation of such deter-
mination and hold a vote on whether to rescind 
such determination.
‘‘(B) PROCEDURES.—Upon receipt of a 
written request under paragraph (A), 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); and 
‘‘(ii) provide oral testimony and oral 
argument before the members of the Coun-
cil. 
‘‘(C) TREATMENT OF PLAN.—If the com-
pany submits a plan in accordance with sub-
paragraph (B)(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.
‘‘(D) EXPLANATION FOR CERTAIN COMPA-
NIES.—With respect to a reevaluation under 
this paragraph where the determination being 
reevaluated was made before the date of enact-
ment of this paragraph, the nonbank financial 
company may require the Council, as part of 
such reevaluation, to explain with specificity the 
basis for such determination. 
‘‘(3) RESCISSION OF DETERMINATION.— 
‘‘(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).’’; 
(4) by amending subsection (e) to read as fol-
lows: 
‘‘(e) REQUIREMENTS FOR PROPOSED DETERMINA-
TION, NOTICE AND OPPORTUNITY FOR HEARING, AND 
FINAL DETERMINATION.— 
‘‘(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, a copy of which shall be provided to the 
company’s primary financial regulatory agency;