FSOC - Hearing Procedures - May 22, 2012
|Notice Date||Effective Date||Comment Deadline|
|May 22, 2012||May 22, 2012||July 30, 2012|
On May 22, 2012, the Financial Stability Oversight Council released its required procedures for hearing requests under Title I or Title VIII of the Dodd-Frank Act. A nonbank financial company or financial market utility that desires a hearing before the Council, generally in connection with a proposed determination or an emergency waiver or modification, should follow these specific guidelines.
The procedures became effective immediately, but the FSOC did invite the public to comment upon its procedures and make recommendations on modifications to the procedures. The deadline for public comment is July 30, 2012.
The FSOC was established by the Dodd-Frank Act to provide, for the first time, comprehensive monitoring to ensure the stability of the U.S. financial system. Its nine-member board is made up of the heads of financial regulatory agencies, and is chaired by the Secretary of the Treasury. Among its duties is the development of a framework for monitoring and responding to systemic risk in the financial system. Chief among its rulemaking authority has been creating regulations to supervise nonbank financial companies and financial market utilities. The council expects to complete its list entities designated as "systemically important" by the end of 2012.
The Dodd-Frank Act requires the council to give a nonbank financial company or FMU notice and an opportunity to contest a proposed determination, but does not set forth procedures for a hearing. This document establishes such procedures.
In general, the procedure is as follows:
- Initial Notice: In conjunction with a determination, the council will specify the manner by which a petitioner may request a hearing
- Request for hearing, written request; justification for oral hearing no later than 10 days prior to the hearing
- Appointment of "Hearing Clerk"
- Oral Hearing: at the discretion of the council. At the hearing, council members are allowed to ask questions of the petitioner
- Transcript: The hearing clerk will arrange for a transcript or other recording of the oral hearing.
The council agrees to maintain the confidentiality of the petitioner.
Related Documents: FSOC Hearing Procedures; Federal Register Notice and Request for Comment