‘‘(3) OTHER
CRITERIA.—A nonbank financial 
company satisfies the criteria in this paragraph if 
such nonbank financial company has— 
‘‘(A) $30,000,000,000 or more in gross no-
tional credit default swaps outstanding for 
which the nonbank financial company is the ref-
erence entity; 
‘‘(B) $3,500,000,000 or more of deriva-
tives liabilities; 
‘‘(C) $20,000,000,000 or more in total 
debt outstanding; 
‘‘(D) a 15–1, or higher, leverage ratio; or 
‘‘(E) a 10 percent, or higher, short-term 
debt ratio. 
‘‘(4) INVESTMENT
ADVISER
CRITERIA.—With 
respect to an investment adviser that is registered 
with the Commission under the Investment Advisers 
Act of 1940, the criteria in this paragraph is that 
the 
investment 
adviser 
has 
more 
than 
$1,500,000,000,000 in assets under management. 
‘‘(c) RESCISSION OF DESIGNATION.— 
‘‘(1) IN GENERAL.—With respect to a nonbank 
financial company designated as systemically impor-
tant under subsection (a), if the Council determines 
that neither material financial distress at the 
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nonbank financial company, nor the nature, scope, 
size, scale, concentration, interconnectedness, or mix 
of the activities of the nonbank financial company, 
could pose a threat to the financial stability of the 
United States, the Council may rescind such des-
ignation (in this subsection referred to as a ‘rescis-
sion determination’) for a period of 2 years. 
‘‘(2) AUTHORITY TO RENEW RESCISSION.—The 
Council may renew a rescission determination made 
under paragraph (1) for an unlimited number of ad-
ditional 2-year periods, if the Council makes a new 
determination that the nonbank financial company 
meets the criteria described under paragraph (1) at 
the beginning of each such renewal. 
‘‘(3) AUTHORITY TO REVIEW RESCISSION.—The 
Chairperson may review the status of a nonbank fi-
nancial company with respect to a rescission deter-
mination before the end of a 2-year period described 
under paragraph (1) or (2) for any reason. The 
Chairperson shall notify the members of the Council 
of such review and shall call a vote to renew the re-
scission determination within 7 days of such notifi-
cation. If the Council fails to renew the rescission 
determination, the nonbank financial company shall 
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be deemed once again to be designated as system-
ically important. 
‘‘(d) AUTOMATIC RESCISSION OF DESIGNATION.—If 
a nonbank financial company does not meet the criteria 
described in subsection (b) for 9 consecutive months, the 
Council shall immediately, and automatically rescind the 
designation of the nonbank financial company as system-
ically important. 
‘‘(e) APPLICATION.—For purposes of this section, the 
term ‘nonbank financial company’ does not include a Gov-
ernment-sponsored enterprise or an investment company 
registered with the Commission under the Investment 
Company Act of 1940. 
‘‘(f) DEFINITION.—In this section and with respect 
to a nonbank financial company, the term ‘designated as 
systemically important’ means the nonbank financial com-
pany is subject to a determination under section 113 that 
the nonbank financial company shall be supervised by the 
Board of Governors and shall be subject to prudential 
standards, in accordance with this title.’’. 
(b) CLERICAL AMENDMENT.—The table of contents 
for the Dodd-Frank Wall Street Reform and Consumer 
Protection Act is amended by inserting after the item re-
lating to section 113 the following: 
‘‘Sec. 113A. Automatic designation of certain large nonbank financial compa-
nies.’’. 
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(c) EFFECTIVE DATE.—This section and the amend-
ments made by this section shall take effect not later than 
9 months after the date of the enactment of this Act. 
SEC. 4. COUNCIL REGULATION OF SYSTEMICALLY RISKY 
ACTIVITIES. 
(a) IN GENERAL.—Subtitle A of the Financial Sta-
bility Act of 2010 (12 U.S.C. 5321 et seq.), as amended 
by section 2, is further amended by adding at the end the 
following: 
‘‘SEC. 125. COUNCIL REGULATION OF SYSTEMICALLY RISKY 
ACTIVITIES. 
‘‘(a) AUTHORITY OF THE COUNCIL.—Subject to sub-
section (b), the Council shall issue such rules as may be 
required to regulate an activity or practice if the Council 
determines that the conduct, scope, nature, size, scale, 
concentration, or interconnectedness of such activity or 
practice could create or increase the risk of significant li-
quidity, credit, or other problems spreading among bank 
holding companies and nonbank financial companies, fi-
nancial markets of the United States, or low-income, mi-
nority, or under-served communities. 
‘‘(b) COUNCIL DELEGATION TO THE PRIMARY REGU-
LATOR.—With respect to an activity or practice that the 
council determines meets the standard outlined in sub-
section (a)— 
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‘‘(1) the Council shall issue recommendations to 
the primary regulator for a rulemaking to address 
the risk posed by the activity, and provide the pri-
mary regulator with a 12-month period to issue a 
final rule to address such risk; and 
‘‘(2) if the primary regulator does not issue 
such a final rule within the period described under 
paragraph (1) or the Council determines that such 
final rule is insufficient to address the risk, the 
Council may— 
‘‘(A) terminate such final rule, if applica-
ble; and 
‘‘(B) issue a rule to address the risk. 
‘‘(c) BACKUP AUTHORITY
OF
THE COUNCIL
FOR 
MEMBER AGENCY RULEMAKINGS.—With respect to any 
rulemaking required of a member agency by Federal stat-
ute, if the member agency does not issue the rule within 
the time frame required by such Federal statute, the 
Council may issue such rule in place of the member agen-
cy. 
‘‘(d) PRIMARY REGULATOR DEFINED.—With respect 
to an activity, the term ‘primary regulator’ means— 
‘‘(1) one or more member agencies that the 
Council determines are primarily responsible for reg-
ulating the activity; or 
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‘‘(2) if the Council cannot make a determina-
tion under paragraph (1), the member agency that 
the Council determines is the best choice to serve as 
the primary regulator with respect to such activity.’’. 
(b) CLERICAL AMENDMENT.—The table of contents 
for the Dodd-Frank Wall Street Reform and Consumer 
Protection Act, as amended by section 2, is further 
amended by inserting after the item relating to section 
124 the following: 
‘‘Sec. 125. Council regulation of systemically risky activities.’’. 
SEC. 5. MINIMUM STAFFING AND FUNDING LEVELS FOR 
THE COUNCIL AND THE OFFICE OF FINAN-
CIAL RESEARCH. 
(a) IN GENERAL.—The Financial Stability Act of 
2010 (12 U.S.C. 5311 et seq.) is amended— 
(1) in section 118— 
(A) in the section heading, by adding 
‘‘AND STAFFING’’ at the end; 
(B) by striking ‘‘Any expenses’’ and insert-
ing the following: 
‘‘(a) EXPENSES.—Any expenses’’; 
(C) by inserting after ‘‘Office of Financial 
Research.’’ the following: ‘‘The Office of Finan-
cial Research shall transfer a minimum of 
$18,000,000 to the Council each year (adjusted 
for inflation) to pay for the costs of the Council 
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(4) in section 155(d)— 
(A) by striking ‘‘the Secretary’’ and insert-
ing ‘‘the Office’’; and 
(B) by adding at the end the following: 
‘‘The aggregate amount of assessments under 
this subsection with respect to a calendar year 
shall not be less than $168,000,000 (adjusted 
for inflation).’’. 
(b) CLERICAL AMENDMENT.—The table of contents 
for the Dodd-Frank Wall Street Reform and Consumer 
Protection Act is amended in the item relating to section 
118 by adding at the end the following: ‘‘and staffing’’. 
SEC. 6. TRANSPARENCY IN OPERATIONS OF THE FINAN-
CIAL STABILITY OVERSIGHT COUNCIL. 
(a) MEETINGS.—Section 111(e) of the Financial Sta-
bility Act of 2010 (12 U.S.C. 5321(e)) is amended— 
(1) in paragraph (1), by striking ‘‘not less fre-
quently than quarterly.’’ and inserting ‘‘not less fre-
quently than twice each quarter. At least 1 of such 
quarterly meetings shall be open to the public.’’; and 
(2) by adding at the end the following: 
‘‘(3) TRANSCRIPTS.—The Council shall publicly 
release transcripts of meetings held pursuant to 
paragraph (1) not later than 5 years after the date 
of such meeting.’’. 
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(b) TESTIMONY.—Section 112(c) of the Financial 
Stability Act of 2010 (12 U.S.C. 5322(c)) is amended— 
(1) in the subsection heading, by striking ‘‘BY 
THE CHAIRPERSON’’; and 
(2) by inserting ‘‘and each voting member of 
the Council’’ after ‘‘The Chairperson’’. 
(c) MEMBER AGENCY STATEMENTS.—Section 112 of 
the Financial Stability Act of 2010 (12 U.S.C. 5322) is 
amended by adding at the end the following: 
‘‘(e) MEMBER AGENCY STATEMENTS.—After pro-
viding testimony pursuant to subsection (c), the head of 
each member agency shall submit to Congress a signed 
statement— 
‘‘(1) affirming that the member agency is tak-
ing all reasonable steps to ensure financial stability 
and to mitigate systemic risk that would negatively 
affect the economy; or 
‘‘(2) detailing additional steps that the member 
agency should take to ensure financial stability and 
to mitigate systemic risk that would negatively affect 
the economy.’’. 
SEC. 7. CLIMATE CHANGE SUBCOMMITTEE. 
(a) IN GENERAL.—Subtitle A of the Financial Sta-
bility Act of 2010 (12 U.S.C. 5321 et seq.), as amended 
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by section 4, is further amended by adding at the end the 
following: 
‘‘SEC. 126. CLIMATE CHANGE SUBCOMMITTEE. 
‘‘(a) IN GENERAL.—The Council shall establish a 
subcommittee of the Council that shall support the Council 
in identifying risks to, and in responding to emerging 
threats to, the stability of the United States financial sys-
tem as a result of climate change. 
‘‘(b) RESPONSIBILITIES.— 
‘‘(1) SUBCOMMITTEE.—The subcommittee es-
tablished under subsection (a) shall, not later than 
1 year after the date of enactment of this section, 
and in consultation with the Office of Financial Re-
search, submit to Congress an assessment of the risk 
posed by climate change to the efficiency, competi-
tiveness, and stability of the United States financial 
system as a whole. 
‘‘(2) COUNCIL.—For each year after the year in 
which the assessment required under paragraph (1) 
is submitted, the Financial Stability Oversight Coun-
cil shall include in the annual report required under 
section 112(a)(2)(N) an update to that assessment. 
‘‘(c) COMPOSITION.—The subcommittee established 
under subsection (a) shall be composed of— 
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‘‘(1) the Chairman of the Board of Governors 
of the Federal Reserve System; 
‘‘(2) the Secretary of the Treasury; 
‘‘(3) the Comptroller of the Currency; 
‘‘(4) the Chairperson of the Board of Directors 
of the Federal Deposit Insurance Corporation; 
‘‘(5) the Chairman of the Securities and Ex-
change Commission; 
‘‘(6) the Chairperson of the Commodity Fu-
tures Trading Commission; and 
‘‘(7) any other voting or nonvoting members 
that the Council determines to be appropriate.’’. 
(b) CLERICAL AMENDMENT.—The table of contents 
for the Dodd-Frank Wall Street Reform and Consumer 
Protection Act, as amended by section 4, is further 
amended by inserting after the item relating to section 
125 the following: 
‘‘Sec. 126. Climate change subcommittee.’’. 
Æ 
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