IB 
Union Calendar No. 681 
114TH CONGRESS 
2D SESSION 
H. R. 1550 
[Report No. 114–871] 
To amend the Financial Stability Act of 2010 to improve the transparency 
of the Financial Stability Oversight Council, to improve the SIFI designa-
tion process, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 23, 2015 
Mr. ROSS (for himself and Mr. DELANEY) introduced the following bill; which 
was referred to the Committee on Financial Services 
DECEMBER 12, 2016 
Additional sponsors: Mr. MURPHY of Florida, Ms. SINEMA, Mr. BARR, Ms. 
KUSTER, Mr. LUETKEMEYER, Mr. MEEKS, Mr. TIBERI, Mr. POLIS, Mr. 
DAVID SCOTT of Georgia, Mr. LUCAS, Mr. STIVERS, Mr. CARNEY, Mr. 
SHERMAN, Mr. CA´RDENAS, Mrs. BEATTY, Mr. KIND, Mr. ASHFORD, Mr. 
NORCROSS, Mr. HUIZENGA of Michigan, Mr. HURT of Virginia, Mr. 
MULVANEY, Mr. POLIQUIN, Mr. MESSER, Mr. VARGAS, Mr. HIMES, Ms. 
SEWELL of Alabama, Mr. NEUGEBAUER, Mr. GUINTA, Mrs. WAGNER, 
Mr. RENACCI, Mr. CONNOLLY, Mr. PITTENGER, Mr. PERLMUTTER, Mr. 
COSTELLO of Pennsylvania, Ms. DELBENE, Mr. BRENDAN F. BOYLE of 
Pennsylvania, Mr. MCHENRY, Mr. HILL, Mr. KILMER, Mr. FINCHER, 
Mr. WILLIAMS, Mr. ROYCE, Mr. TIPTON, Mr. EMMER of Minnesota, Mr. 
FOSTER, Mrs. LOVE, Miss RICE of New York, Mr. QUIGLEY, Mr. COSTA, 
Mrs. KIRKPATRICK, Mr. PETERS, Mr. CRENSHAW, Mr. SESSIONS, Mr. 
DUFFY, 
Mr. 
THOMPSON
of 
California, 
Mr. 
MACARTHUR, 
Mr. 
SCHWEIKERT, Mr. MOULTON, and Mr. AGUILAR 
DECEMBER 12, 2016 
Committed to the Committee of the Whole House on the State of the Union 
and ordered to be printed 
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A BILL 
To amend the Financial Stability Act of 2010 to improve 
the transparency of the Financial Stability Oversight 
Council, to improve the SIFI designation process, and 
for other purposes. 
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Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Financial Stability 
Oversight Council Improvement Act of 2015’’. 
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); 
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(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-
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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-
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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 
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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 
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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-
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pany, a copy of which shall be provided to the 
company’s primary financial regulatory agency; 
‘‘(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; 
‘‘(C) an opportunity to meet with the 
Council to discuss the Council’s analysis; and 
‘‘(D) a list of the public sources of infor-
mation being considered by the Council as part 
of such analysis. 
‘‘(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 
States the Council has identified relating to the 
nonbank financial company; 
‘‘(B) with respect to nonbank financial 
company with a primary financial regulatory 
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agency, provide a copy of the resolution de-
scribed under subparagraph (A) to the primary 
financial regulatory agency and provide such 
agency with at least 180 days from the receipt 
of the resolution to— 
‘‘(i) consider the risks identified in the 
resolution; and 
‘‘(ii) provide a written response to the 
Council that includes its assessment of the 
risks identified and the degree to which 
they are or could be addressed by existing 
regulation and, as appropriate, issue pro-
posed regulations or undertake other regu-
latory action to mitigate the identified 
risks; 
‘‘(C) provide the nonbank financial com-
pany with written notice that the Council— 
‘‘(i) is considering whether to make a 
proposed determination with respect to the 
nonbank financial company under sub-
section (a) or (b), as applicable, which no-
tice explains with specificity the basis for 
the Council’s consideration, including any 
aspects of the company’s operations or ac-
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tivities that are a primary focus for the 
Council; or 
‘‘(ii) has determined not to subject the 
company to further review, which action 
shall not preclude the Council from issuing 
a notice to the company under subpara-
graph (1)(A) at a future time; and 
‘‘(D) in the case of a notice to the nonbank 
financial company under subparagraph (C)(i), 
provide the company with— 
‘‘(i) an opportunity to meet with the 
Council to discuss the Council’s analysis; 
‘‘(ii) an opportunity to submit written 
materials, within such time as the Council 
deems appropriate (but not less than 30 
days after the date of receipt by the com-
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; 
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‘‘(iii) an explanation of how any re-
quest by the Council for information from 
the nonbank financial company relates to 
potential risks to the financial stability of 
the United States and the Council’s anal-
ysis of the company; 
‘‘(iv) written notice when the Council 
deems its evidentiary record regarding 
such nonbank financial company to be 
complete; and 
‘‘(v) an opportunity to meet with the 
members of the Council. 
‘‘(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 first determines that 
any proposed regulations or other regu-
latory actions taken by the primary finan-
cial regulatory agency after receipt of the 
resolution 
described 
under 
paragraph 
(2)(A) are insufficient to mitigate 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 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— 
‘‘(A) provide to a nonbank financial com-
pany 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 prudential standards in ac-
cordance with this title, an explanation of the 
specific risks to the financial stability of the 
United States presented by the nonbank finan-
cial company, and a detailed explanation of why 
existing regulations or other regulatory action 
by the company’s primary financial regulatory 
agency, if any, is insufficient to mitigate such 
risk; and 
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‘‘(B) provide the primary financial regu-
latory agency of the nonbank financial company 
a copy of the nonpublic written explanation of 
the Council’s proposed determination. 
‘‘(5) HEARING.— 
‘‘(A) IN
GENERAL.—Not later than 30 
days after the date of receipt of any notice of 
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— 
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‘‘(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 to the members of the Council. 
‘‘(6) COUNCIL
CONSIDERATION
OF
COMPANY 
PLAN.— 
‘‘(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. 
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‘‘(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. 
‘‘(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 
its subsidiaries (or, if none, the Board of 
Governors) to inspect the company or its 
subsidiaries for the purpose of evaluating 
the implementation of the company’s plan. 
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‘‘(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 
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.— 
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‘‘(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). 
‘‘(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.— 
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‘‘(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 
‘‘(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). 
‘‘(C) NOTICE TO PRIMARY FINANCIAL REG-
ULATORY AGENCY.—In the case of a final de-
termination under subsection (a) or (b), the 
Council shall provide the primary financial reg-
ulatory agency of the nonbank financial com-
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