Page:United States Statutes at Large Volume 113 Part 2.djvu/344

 113 STAT. 1364 PUBLIC LAW 106-102—NOV. 12, 1999 I "(II) the systems for monitoring and control- /?'li 'f ling such risks; and • "(iii) to monitor compHance with the provisions of this Act or any other Federal law that the Board has specific jurisdiction to enforce against such com- V pany or subsidiary and those governing transactions j\, • and relationships between any depository institution subsidiary and its affiliates. " (B) FUNCTIONALLY REGULATED SUBSIDIARIES.—Notwithstanding subparagraph (A), the Board may make, examinations of a functionally regulated subsidiary of a bank holding company only if— "(i) the Board has reasonable cause to believe that c,; such subsidiary is engaged in activities that pose a material risk to an affiliated depository institution; , f' "(ii) the Board reasonably determines, after ,. ,p reviewing relevant reports, that examination of the .!' subsidiary is necessary to adequately inform the Board, V of the systems described in subparagraph (A)(ii)(II); or "(iii) based on reports and other available information, the Board has reasonable cause to believe that a subsidiary is not in compliance with this Act or any other Federal law that the Board has specific jurisdiction to enforce against such subsidiary, including provisions relating to transactions with an affiliated depository institution, and the Board cannot make such determination through examination of the •' • affiliated depository institution or the bank holding '^' company. "(C) RESTRICTED FOCUS OF EXAMINATIONS. — The Board shall, to the fullest extent possible, limit the focus and scope of any examination of a bank holding company to— "(i) the bank holding company; and "(ii) any subsidiary of the bank holding company ' that could have a materially adverse effect on the safety and soundness of any depository institution subsidiary of the holding company due to— "(I) the size, condition, or activities of the sub- ' sidiary; or '' "(II) the nature or size of transactions between the subsidiary and any depository institution that is also a subsidiary of the bank holding company. "(D) DEFERENCE TO BANK EXAMINATIONS.— The Board shall, to the fullest extent possible, for the purposes of this paragraph, use the reports of examinations of depository institutions made by the appropriate Federal and State depository institution supervisory authority. "(E) DEFERENCE TO OTHER EXAMINATIONS. — The Board shall, to the fullest extent possible, forego an examination by the Board under this paragraph and instead review the reports of examination made of— "(i) any registered broker or dealer by or on behalf of the Securities and Exchange Commission; "(ii) any registered investment adviser properly ' registered by or on behalf of either the Securities and Exchange Commission or any State;

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