Definition of “Predominantly Engaged in Activities That Are Financial in Nature or Incidental Thereto”

Résumé

The Federal Deposit Insurance Corporation ("FDIC") is amending the definition of "financial activities" set forth in section 380.8 of the FDIC's notice of proposed rulemaking published in the Federal Register on March 23, 2011 titled "Orderly Liquidation Authority" ("March 2011 NPR").\1\ The March 2011 NPR proposed standards for determining if a company is predominantly engaged in financial activities for purposes of Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act ("Dodd-Frank Act" or "Act").\2\ A company that is predominantly engaged in such activities is a "financial company" for purposes of Title II of the Act (unless it is one of the few entities specifically excepted). Provisions of the March 2011 NPR other than section 380.8 already have been finalized. Based on a number of factors described within this notice of proposed rulemaking ("NPR"), the FDIC believes that it is necessary to clarify the scope of the activities that would be considered to be financial activities. Accordingly, this NPR amends section 380.8 of the March 2011 NPR to clarify the activities that would be considered to be financial activities for purposes of determining if a company