Disclosure to Shareholders; Disclosure to Investors in Systemwide and Consolidated Bank Debt Obligations of the Farm Credit System; Quarterly Report

Zusammenfassung

The Farm Credit Administration (FCA or Agency) adopts final amendments to its regulations governing the preparation, filing, and distribution of Farm Credit System (FCS or System) bank and association reports to shareholders and investors. The rule implements a statutory amendment that supersedes the regulatory requirement that FCS institutions disseminate quarterly reports to shareholders. The rule also imposes a new notice requirement designed to improve shareholder access to timely information and disclosure regarding adverse events affecting their institutions. Under the new regulations, FCS institutions must prepare and distribute a notice to shareholders when their permanent capital falls below the regulatory minimum standard. To facilitate the presentation of financial statements by FCS institutions in a manner that conforms with generally accepted accounting principles (GAAP), the rule removes the requirement that banks must present their financial statements on a combined basis with their related associations. The rule also makes other technical changes to FCA regulations governing disclosure to shareholders and investors.