[Editor’s Note: The following post is authored by Goodwin Procter LLP]
The FRB issued a final rule (the “Final Rule”) establishing annual assessment fees intended to cover the costs of the FRB’s supervision and regulation of bank holding companies and savings and loan companies with $50 billion or more in total assets and nonbank financial companies designated by the Financial Stability Oversight Council as subject to supervision by the FRB because they could potentially pose a threat to U.S. financial stability (“Assessed Companies”). The Final Rule implements Section 318 of the Dodd-Frank Act, which directs the FRB to collect from Assessed Companies assessments, fees, and other charges equal to the total expenses that the FRB estimates are necessary or appropriate to carry out the FRB’s supervisory and regulatory responsibilities for Assessed Companies.
The Final Rule discusses how the FRB determines which companies are to be charged, estimates the applicable expenses, determines each Assessed Company’s fee and bills for and collects such fees. Under the Final Rule, each calendar year is an assessment period and for the 2012 assessment period payments will be due on December 15, 2013. The FRB states that for subsequent assessment periods the FRB will notify Assessed Companies by June 30 of the year following the applicable assessment period and payments will be due by September 15 of the year following the applicable assessment period. In its announcement of the establishment of the Final Rule, the FRB stated that, for the 2013 assessment period, it would collect an aggregate of approximately $440 million from a total of 70 Assessed Companies.
Click here to read the update.