HR 4790 RFS
functions as an evasion of the requirements of this 
section (including through an abuse of any permitted 
activity), such appropriate Federal banking agency 
shall order, after due notice and opportunity for 
hearing, the banking entity or nonbank financial 
company supervised by the Board to terminate the 
activity and, as relevant, dispose of the investment. 
‘‘(2) SECURITIES AND EXCHANGE COMMISSION 
AND COMMODITY FUTURES TRADING COMMISSION.— 
‘‘(A) IN GENERAL.—Notwithstanding any 
other provision of law except for any rules or 
guidance issued under subsection (b)(2), when-
ever the Securities and Exchange Commission 
or the Commodity Futures Trading Commis-
sion, as appropriate, has reasonable cause to 
believe that a covered nonbank financial com-
pany for which the respective agency is the pri-
mary Federal regulator has made an investment 
or engaged in an activity in a manner that ei-
ther violates the restrictions under this section, 
or that functions as an evasion of the require-
ments of this section (including through an 
abuse of any permitted activity), the Securities 
and Exchange Commission or the Commodity 
Futures Trading Commission, as appropriate, 
VerDate Sep 11 2014 
23:33 Apr 16, 2018
Jkt 079200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H4790.RFS
H4790
rfrederick on DSKBCBPHB2PROD with BILLS
HR 4790 RFS
shall order, after due notice and opportunity for 
hearing, the covered nonbank financial company 
to terminate the activity and, as relevant, dis-
pose of the investment. 
‘‘(B) COVERED NONBANK FINANCIAL COM-
PANY DEFINED.—In this paragraph, the term 
‘covered nonbank financial company’ means a 
nonbank financial company (as defined in sec-
tion 102 of the Financial Stability Act of 2010) 
supervised by the Securities and Exchange 
Commission or the Commodity Futures Trading 
Commission, as appropriate.’’. 
(b) RULE OF CONSTRUCTION.—Nothing in this sec-
tion shall be construed to abrogate, reduce, or eliminate 
the backup authority of the Federal Deposit Insurance 
Corporation authority under the Dodd-Frank Wall Street 
Reform and Consumer Protection Act (12 U.S.C. 5301 
et seq.), the Federal Deposit Insurance Act (12 U.S.C. 
1811), or Federal Deposit Insurance Corporation Im-
provement Act of 1991. 
SEC. 4. EXCLUSION OF COMMUNITY BANKS FROM VOLCKER 
RULE. 
Section 13(h)(1) of the Bank Holding Company Act 
of 1956 (12 U.S.C. 1851(h)(1)) is amended— 
VerDate Sep 11 2014 
23:33 Apr 16, 2018
Jkt 079200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H4790.RFS
H4790
rfrederick on DSKBCBPHB2PROD with BILLS
HR 4790 RFS
(1) in subparagraph (D), by redesignating 
clauses (i) and (ii) as subclauses (I) and (II), respec-
tively, and adjusting the margins accordingly; 
(2) by redesignating subparagraphs (A), (B), 
(C), and (D) as clauses (i), (ii), (iii), and (iv), re-
spectively, and adjusting the margins accordingly; 
(3) in the matter preceding clause (i), as so re-
designated, in the second sentence, by striking ‘‘in-
stitution that functions solely in a trust or fiduciary 
capacity, if—’’ and inserting the following: ‘‘institu-
tion— 
‘‘(A) that functions solely in a trust or fi-
duciary capacity, if—’’; 
(4) in clause (iv)(II), as so redesignated, by 
striking the period at the end and inserting ‘‘; or’’; 
and 
(5) by adding at the end the following: 
‘‘(B) that does not have and is not con-
trolled by a company that has— 
‘‘(i) more than $10,000,000,000 in 
total consolidated assets; and 
‘‘(ii) total trading assets and trading 
liabilities, as reported on the most recent 
applicable regulatory filing filed by the in-
VerDate Sep 11 2014 
23:33 Apr 16, 2018
Jkt 079200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H4790.RFS
H4790
rfrederick on DSKBCBPHB2PROD with BILLS
HR 4790 RFS
stitution, that are more than 5 percent of 
total consolidated assets.’’. 
Passed the House of Representatives April 13, 2018. 
Attest: 
KAREN L. HAAS, 
Clerk. 
VerDate Sep 11 2014 
23:33 Apr 16, 2018
Jkt 079200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H4790.RFS
H4790
rfrederick on DSKBCBPHB2PROD with BILLS