Page:United States Statutes at Large Volume 124.djvu/1459

 124 STAT. 1433 PUBLIC LAW 111–203—JULY 21, 2010 of Governors, or a company that controls a nonbank financial com- pany supervised by the Board of Governors, to conform the activities thereof to the requirements of section 4 of the Bank Holding Com- pany Act of 1956 (12 U.S.C. 1843). (b) REQUIREMENT.— (1) IN GENERAL.— (A) BOARD AUTHORITY.—If a nonbank financial com- pany supervised by the Board of Governors conducts activi- ties other than those that are determined to be financial in nature or incidental thereto under section 4(k) of the Bank Holding Company Act of 1956, the Board of Gov- ernors may require such company to establish and conduct all or a portion of such activities that are determined to be financial in nature or incidental thereto in or through an intermediate holding company established pursuant to regulation of the Board of Governors, not later than 90 days (or such longer period as the Board of Governors may deem appropriate) after the date on which the nonbank financial company supervised by the Board of Governors is notified of the determination of the Board of Governors under this section. (B) NECESSARY ACTIONS.—Notwithstanding subpara- graph (A), the Board of Governors shall require a nonbank financial company supervised by the Board of Governors to establish an intermediate holding company if the Board of Governors makes a determination that the establishment of such intermediate holding company is necessary to— (i) appropriately supervise activities that are deter- mined to be financial in nature or incidental thereto; or (ii) to ensure that supervision by the Board of Governors does not extend to the commercial activities of such nonbank financial company. (2) INTERNAL FINANCIAL ACTIVITIES.—For purposes of this subsection, activities that are determined to be financial in nature or incidental thereto under section 4(k) of the Bank Holding Company Act of 1956, as described in paragraph (1), shall not include internal financial activities, including internal treasury, investment, and employee benefit functions. With respect to any internal financial activity engaged in for the company or an affiliate and a non-affiliate of such company during the year prior to the date of enactment of this Act, such company (or an affiliate that is not an intermediate holding company or subsidiary of an intermediate holding com- pany) may continue to engage in such activity, as long as not less than 2/3 of the assets or 2/3 of the revenues generated from the activity are from or attributable to such company or an affiliate, subject to review by the Board of Governors, to determine whether engaging in such activity presents undue risk to such company or to the financial stability of the United States. (3) SOURCE OF STRENGTH.—A company that directly or indirectly controls an intermediate holding company established under this section shall serve as a source of strength to its subsidiary intermediate holding company. (4) PARENT COMPANY REPORTS.—The Board of Governors may, from time to time, require reports under oath from a Deadline. Notification.