Six-month delay given to ‘revised control framework’ rule; now effective Sept. 30

A six-month delay for the effective date of the Federal Reserve’s new rule for determining whether a company controls another company was issued Tuesday by the agency, moving the date to Sept. 30.

No changes were made to the “revised controlled framework,” the Fed said.

The final rule – which was set to take effect Wednesday – was aimed at, the Fed said, simplifying and increasing the transparency of its rules when determining control by one company of another for purposes of the Bank Holding Company Act and Home Owners’ Loan Act. The Fed noted that if a company has control over a banking organization, the company generally becomes subject to the Fed’s rules and regulations.

Federal Reserve Board announces it will delay by six months the effective date for its revised control framework