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• A company is a nonbank financial company, and thus eligible for a determination by the Council, if it is predominantly engaged in financial activities, subject to certain exceptions.³
  • ³Dodd-Frank Act section 102(a)(4), 12 U.S.C. § 5311(a)(4).
• Section 102(a)(6) of the Dodd-Frank Act provides that a company is “predominantly engaged in financial activities” if at least 85 percent of the company’s and its subsidiaries’ annual gross revenues are derived from, or at least 85 percent of the company’s and its subsidiaries’ consolidated assets are related to, “activities that are financial in nature” as defined in section 4(k) of the Bank Holding Company Act of 1956, as amended (BHC Act).⁴
  • ⁴Dodd-Frank Act section 102(a)(6), 12 U.S.C. § 5311(a)(6). The Board of Governors’ Regulation PP describes activities that are financial in nature as defined in section 4(k) of the BHC Act and establishes the requirements for determining if a company is predominantly engaged in financial activities for purposes of Title I of the Dodd-Frank Act. See 12 C.F.R. part 242.

2013 0919 - FSOC/Prudential - Basis for the Financial Stability Oversight Council’s Final Determination Regarding Prudential Financial, Inc. - 12p