(a) Enhanced disclosure and reporting of compensation arrangements
(1) In general
Not later than 9 months after July 21, 2010, the appropriate Federal regulators jointly shall prescribe regulations or guidelines to require each covered financial institution to disclose to the appropriate Federal regulator the structures of all incentive-based compensation arrangements offered by such covered financial institutions sufficient to determine whether the compensation structure—
(A)provides an executive officer, employee, director, or principal shareholder of the covered financial institution with excessive compensation, fees, or benefits; or
(B)could lead to material financial loss to the covered financial institution.
(2) Rules of construction
Nothing in this section shall be construed as requiring the reporting of the actual compensation of particular individuals. Nothing in this section shall be construed to require a covered financial institution that does not have an incentive-based payment arrangement to make the disclosures required under this subsection.
(b) Prohibition on certain compensation arrangements
Not later than 9 months after July 21, 2010, the appropriate Federal regulators shall jointly prescribe regulations or guidelines that prohibit any types of incentive-based payment arrangement, or any feature of any such arrangement, that the regulators determine encourages inappropriate risks by covered financial institutions—
(1)by providing an executive officer, employee, director, or principal shareholder of the covered financial institution with excessive compensation, fees, or benefits; or
(2)that could lead to material financial loss to the covered financial institution.
The appropriate Federal regulators shall—
(1)ensure that any standards for compensation established under subsections (a) or (b) are comparable to the standards established under section
1831p–1 of this title for insured depository institutions; and
(2)in establishing such standards under such subsections, take into consideration the compensation standards described in section
1831p–1(c) of this title.
The provisions of this section and the regulations issued under this section shall be enforced under section 505 of the Gramm-Leach-Bliley Act [15 U.S.C. 6805] and, for purposes of such section, a violation of this section or such regulations shall be treated as a violation of subtitle A of title V of such Act [15 U.S.C. 6801 et seq.].
As used in this section—
(1)the term “appropriate Federal regulator” means the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, the Board of Directors of the Federal Deposit Insurance Corporation, the Director of the Office of Thrift Supervision, the National Credit Union Administration Board, the Securities and Exchange Commission, the Federal Housing Finance Agency; and
(2)the term “covered financial institution” means—
(A)a depository institution or depository institution holding company, as such terms are defined in section
1813 of this title;
(B)a broker-dealer registered under section
78o of title
1831p–1 of this title, referred to in subsec. (c)(1), was in the original “section of the Federal Deposit Insurance Act (12 U.S.C. 21831p–1)”, and was translated as reading “section 39 of the Federal Deposit Insurance Act”, which is classified to section
1831p–1 of this title, to reflect the probable intent of Congress.
The Gramm-Leach-Bliley Act, referred to in subsec. (d), is Pub. L. 106–102, Nov. 12, 1999, 113 Stat. 1338. Subtitle A (§§ 501–510) of title V of the Act is classified principally to subchapter I (§ 6801 et seq.) of chapter
94 of Title
15, Commerce and Trade. For complete classification of this Act to the Code, see Short Title of 1999 Amendment note set out under section
1811 of this title and Tables.
Section effective 1 day after July 21, 2010, except as otherwise provided, see section 4 ofPub. L. 111–203, set out as a note under section
5301 of this title.
The table below lists the classification updates, since Jan. 3, 2012, for this section. Updates to a broader range of sections may be found at the update page for containing chapter, title, etc.
The most recent Classification Table update that we have noticed was Tuesday, August 13, 2013
An empty table indicates that we see no relevant changes listed in the classification tables. If you suspect that our system may be missing something, please double-check with the Office of the Law Revision Counsel.
Description of Change
Statutes at Large
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