Background and Summary of the Board’s Rules Regarding Delegation of Authority

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Section 11(k) of the Federal Reserve Act (12 U.S.C. 248(k)) authorizes the Board of Governors of the Federal Reserve System—

to delegate, by published order or rule and subject to the Administrative Procedure Act, any of its functions, other than those relating to rulemaking or pertaining principally to monetary and credit policies, to one or more hearing examiners, members or employees of the Board, or Federal Reserve Banks. The assignment of responsibility for the performance of any function that the Board determines to delegate shall be a function of the Chairman. The Board shall, upon the vote of one member, review action taken at a delegated level within such time and in such manner as the Board shall by rule prescribe.

The Board’s Rules Regarding Delegation of Authority (12 CFR 265) detail the responsibilities that the Board has delegated. Section 265.4 addresses the specific functions delegated to Board members. The functions that have been delegated to Board employees are set out in sections 265.5 through 265.11 and section 265.13, those delegated to the Federal Open Market Committee in section 265.12, and those delegated to the Federal Reserve Banks in section 265.20. Provisions for review of any action taken pursuant to delegated authority are found in section 265.3. Generally, the Board will review a delegated action only if a Board member, at his or her own initiative, requests a review or if a person who claims to have been adversely affected by the delegated action submits a petition for review.