The FSOC has finalized the criteria that will determine which nonbanking companies are subject to systemic regulation dictated by the Federal Reserve Board. Although the quantitative criteria generally apply to very large bank-like firms, the FSOC has made it clear that neither these criteria nor the qualitative ones detailed in the rule constrain its ability to name nonbanks as systemic, even if the firms are asset managers or others on which additional analytics to identify systemic criteria remain under consideration. The process for making a systemic designation and, then, notifying a firm and giving it an opportunity to appeal designation are also in this rule, with FSOC here too retaining considerable discretion to deny arguments or procedures firms may use to contest designation.

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