(a) Divestiture requirement. A nonbank financial company supervised
by the Board shall come into compliance with all applicable requirements
of section 13 of the Bank Holding Company Act (12 U.S.C. 1851) and
this subpart, including any capital requirements or quantitative limitations
adopted there under and applicable to the company, not later than
2 years after the date the company becomes a nonbank financial company
supervised by the Board.
(b) Extensions. The Board may, by rule or order,
extend the two-year period under paragraph (a) by not more than three
separate one-year periods, if, in the judgment of the Board, each
such one-year extension is consistent with the purposes of section
13 of the Bank Holding Company Act (12 U.S.C. 1851) and this subpart
and would not be detrimental to the public interest.
(c) Approval required to hold interests
in excess of time limit. A nonbank financial company supervised
by the Board that seeks the Board’s approval for an extension of the
conformance period under paragraph (b) of this section must—
(1) Submit a request in writing to the
Board at least 180 days prior to the expiration of the applicable
time period;
(2) Provide
the reasons why the nonbank financial company supervised by the Board
believes the extension should be granted; and
(3) Provide a detailed explanation of the
company’s plan for conforming the activity or investment(s) to any
applicable requirements established under section 13(a)(2) or (f)(4)
of the Bank Holding Company Act (12 U.S.C. 1851(a)(2) and (f)(4)).
(d) Factors
governing Board determinations.
(1) In general. In reviewing any application for an extension under paragraph (b)
of this section, the Board may consider all the facts and circumstances
related to the nonbank financial company and the request including,
to the extent determined relevant by the Board, the factors described
in section 225.181(d)(1).
(2) Timing. The Board will seek to
act on any request for an extension under paragraph (b) of this section
no later than 90 calendar days after the receipt of a complete record
with respect to such request.
(e) Authority to impose restrictions
on activities or investments during any extension period. The
Board may impose conditions on any extension approved under paragraph
(b) of this section as the Board determines are necessary or appropriate
to protect the safety and soundness of the nonbank financial company
or the financial stability of the United States, address material
conflicts of interest or other unsound practices, or otherwise further
the purposes of section 13 of the Bank Holding Company Act (12 U.S.C.
1851) and this subpart.
