--- kind: "section" citation: "12 U.S.C. § 5330" title: "12" title_heading: "Banks and Banking" number: "5330" heading: "Additional standards applicable to activities or practices for financial stability purposes" release: "119-102" url: "https://uscodex.org/usc/12/5330" units: - "Chapter 53 — Wall Street Reform and Consumer Protection" - "Subchapter I — Financial Stability" - "Part A — Financial Stability Oversight Council" --- # §5330. Additional standards applicable to activities or practices for financial stability purposes - (a) **In general—** The [Council](/usc/12/5301.md?p=8) may provide for more stringent regulation of a financial activity by issuing recommendations to the [primary financial regulatory agencies](/usc/12/5301.md?p=12) to apply new or heightened standards and safeguards, [including](/usc/12/25b.md?p=a-3) standards enumerated in [section 5325 of this title](/usc/12/5325.md), for a financial activity or practice conducted by [bank holding companies](/usc/12/5311.md?p=a-1) or [nonbank financial companies](/usc/12/5311.md?p=a-4-C) under their respective jurisdictions, if the [Council](/usc/12/5301.md?p=8) determines that the conduct, scope, nature, size, scale, concentration, or interconnectedness of such activity or practice could create or increase the risk of significant liquidity, [credit](/usc/12/5481.md?p=7), or other problems spreading among [bank holding companies](/usc/12/5311.md?p=a-1) and [nonbank financial companies](/usc/12/5311.md?p=a-4-C), financial markets of the United States, or low-income, minority, or underserved communities. - (b) **Procedure for recommendations to regulators—** - (1) **Notice and opportunity for comment—** The [Council](/usc/12/5301.md?p=8) shall consult with the [primary financial regulatory agencies](/usc/12/5301.md?p=12) and provide notice to the public and opportunity for comment for any proposed recommendation that the [primary financial regulatory agencies](/usc/12/5301.md?p=12) apply new or heightened standards and safeguards for a financial activity or practice. - (2) **Criteria—** The new or heightened standards and safeguards for a financial activity or practice recommended under [paragraph (1)](#b-1)— - (A) shall take costs to long-term economic growth into account; and - (B) may include prescribing the conduct of the activity or practice in specific ways (such as by limiting its scope, or applying particular [capital](/usc/12/51c.md) or risk management requirements to the conduct of the activity) or prohibiting the activity or practice. - (c) **Implementation of recommended standards—** - (1) **Role of primary financial regulatory agency—** - (A) **In general—** Each [primary financial regulatory agency](/usc/12/5301.md?p=12) may impose, require reports regarding, examine for compliance with, and enforce standards in accordance with this section with respect to those entities for which it is the [primary financial regulatory agency](/usc/12/5301.md?p=12). - (B) **Rule of construction—** The authority under this paragraph is in addition to, and does not limit, any other authority of a [primary financial regulatory agency](/usc/12/5301.md?p=12). Compliance by an entity with actions taken by a [primary financial regulatory agency](/usc/12/5301.md?p=12) under this section shall be enforceable in accordance with the statutes governing the respective jurisdiction of the [primary financial regulatory agency](/usc/12/5301.md?p=12) over the entity, as if the [agency](/usc/12/1422.md?p=12) action were taken under those statutes. - (2) **Imposition of standards—** The [primary financial regulatory agency](/usc/12/5301.md?p=12) shall impose the standards recommended by the [Council](/usc/12/5301.md?p=8) in accordance with [subsection (a)](#a), or similar standards that the [Council](/usc/12/5301.md?p=8) deems acceptable, or shall explain in writing to the [Council](/usc/12/5301.md?p=8), not later than 90 days after the date on which the [Council](/usc/12/5301.md?p=8) issues the recommendation, why the [agency](/usc/12/1422.md?p=12) has determined not to follow the recommendation of the [Council](/usc/12/5301.md?p=8). - (d) **Report to Congress—** The [Council](/usc/12/5301.md?p=8) shall report to Congress on— - (1) any recommendations issued by the [Council](/usc/12/5301.md?p=8) under this section; - (2) the implementation of, or failure to implement, such recommendation on the part of a [primary financial regulatory agency](/usc/12/5301.md?p=12); and - (3) in any case in which no [primary financial regulatory agency](/usc/12/5301.md?p=12) exists for the [nonbank financial company](/usc/12/5311.md?p=a-4-C) conducting [financial activities](/usc/12/1467b.md?p=a-1) or practices referred to in [subsection (a)](#a), recommendations for legislation that would prevent such activities or practices from threatening the stability of the financial system of the United States. - (e) **Effect of rescission of identification—** - (1) **Notice—** The [Council](/usc/12/5301.md?p=8) may recommend to the relevant [primary financial regulatory agency](/usc/12/5301.md?p=12) that a financial activity or practice no longer requires any standards or safeguards implemented under this section. - (2) **Determination of primary financial regulatory agency to continue—** - (A) **In general—** Upon receipt of a recommendation under [paragraph (1)](#e-1), a [primary financial regulatory agency](/usc/12/5301.md?p=12) that has imposed standards under this section shall determine whether such standards should remain in effect. - (B) **Appeal process—** Each [primary financial regulatory agency](/usc/12/5301.md?p=12) that has imposed standards under this section shall promulgate regulations to establish a procedure under which entities under its jurisdiction may appeal a determination by such [agency](/usc/12/1422.md?p=12) under this paragraph that standards imposed under this section should remain in effect. ## Source credit (Pub. L. 111–203, title I, § 120, July 21, 2010, 124 Stat. 1408.)