The Federal Reserve Board’s proposed guidance for implementing a framework to supervise insurance organizations owned by banks – and overseen by the Federal Reserve – is out for public comment until April 5, according to a Federal Register notice published Friday.
The Fed’s January proposal is focused on the supervision of bank holding companies significantly engaged in insurance activities and would apply guidance and allocate supervisory resources based on the risk of a particular firm. It also would formalize a supervisory rating system for the bank holding companies and describe how examiners work with state insurance regulators.
If finalized, the Fed has said, the guidance would apply to any depository institution holding company that is an insurance underwriting company or that has more than 25% of its consolidated assets held by insurance underwriting subsidiaries.
Reg lookup: Framework for the Supervision of Insurance Organizations