Insights & Publications
© 2019 Debevoise & Plimpton LLP
Federal Reserve Proposes Guidance on Effective Management
11 January 2018
View Client Update
On January 4, 2018, the Federal Reserve Board (the “FRB”) proposed guidance for effective senior management, management of business lines and independent risk management and controls for large financial institutions. Comments on the proposal are due by March 15, 2018.
The FRB has said that the proposal is intended to consolidate and clarify its existing supervisory expectations regarding risk management and define the roles and responsibilities of key individuals who are accountable for risk management within a firm. However, firms will need to evaluate carefully the prescriptiveness of the proposal against their current practices as it could limit the ability of an institution to operate efficiently its risk management function.
The proposal applies to (1) bank holding companies and savings and loan holding companies with total assets of $50 billion or more; (2) the combined U.S. operations of foreign banking organizations with combined U.S. assets (branch and nonbranch) of $50 billion or more; (3) any state member bank subsidiaries of entities in categories (1) or (2); and (4) nonbank financial companies designated by the Financial Stability Oversight Council for supervision by the FRB.
Matthew L. Biben
Helen V. Cantwell
Andrew J. Ceresney
Satish M. Kini
View More Authors
Debevoise Adds New Counsel to Leading Financial Institutions Group
Debevoise Advises AmTrust in the Merging of its Lloyd’s Business with Canopius.
Debevoise Receives a Burton Award for Legal Writing
Debevoise Partners Matthew Biben and Mark Goodman Address Financial Services Disputes Laws and Regulations in New Guide
UK Modern Slavery Act Transparency Statement
Debevoise Women's Review