12 CFR 225.1 - Authority, purpose, and scope.
(a)Authority. This part 1 (Regulation Y) is issued by the Board of Governors of the Federal Reserve System (Board) under section 5(b) of the Bank Holding Company Act of 1956, as amended ( 12 U.S.C. 1844(b)) (BHC Act); sections 8 and 13(a) of the International Banking Act of 1978 ( 12 U.S.C. 3106 and 3108); section 7(j)(13) of the Federal Deposit Insurance Act, as amended by the Change in Bank Control Act of 1978 ( 12 U.S.C. 1817(j)(13)) (Bank Control Act); section 8(b) of the Federal Deposit Insurance Act ( 12 U.S.C. 1818(b)); section 914 of the Financial Institutions Reform, Recovery and Enforcement Act of 1989 ( 12 U.S.C. 1831i); section 106 of the Bank Holding Company Act Amendments of 1970 ( 12 U.S.C. 1972); and the International Lending Supervision Act of 1983 ( Pub. L. 98-181, title IX). The BHC Act is codified at 12 U.S.C. 1841, et seq.
1 Code of Federal Regulations, title 12, chapter II, part 225.
(b)Purpose. The principal purposes of this part are to:
(3) Set forth the procedures for securing approval for these transactions and activities.
(1)Subpart A contains general provisions and definitions of terms used in this regulation.
(2)Subpart B governs acquisitions of bank or bank holding company securities and assets by bank holding companies or by any company that will become a bank holding company as a result of the acquisition.
(3)Subpart C defines and regulates the nonbanking activities in which bank holding companies and foreign banking organizations may engage directly or through a subsidiary. The Board's Regulation K governs certain nonbanking activities conducted by foreign banking organizations and certain foreign activities conducted by bank holding companies ( 12 CFR part 211, International Banking Operations).
(4)Subpart D specifies situations in which a company is presumed to control voting securities or to have the power to exercise a controlling influence over the management or policies of a bank or other company; sets forth the procedures for making a control determination; and provides rules governing the effectiveness of divestitures by bank holding companies.
(5)Subpart E governs changes in bank control resulting from the acquisition by individuals or companies (other than bank holding companies) of voting securities of a bank holding company or state member bank of the Federal Reserve System.
(8)Subpart H identifies the circumstances when written notice must be provided to the Board prior to the appointment of a director or senior officer of a bank holding company and establishes procedures for obtaining the required Board approval.
(9) Subpart I establishes the procedure by which a bank holding company may elect to become a financial holding company, enumerates the consequences if a financial holding company ceases to meet a requirement applicable to a financial holding company, lists the activities in which a financial holding company may engage, establishes the procedure by which a person may request the Board to authorize additional activities as financial in nature or incidental thereto, and establishes the procedure by which a financial holding company may seek approval to engage in an activity that is complementary to a financial activity.
(10)Subpart J governs the conduct of merchant banking investment activities by financial holding companies as permitted under section 4(k)(4)(H) of the Bank Holding Company Act ( 12 U.S.C. 1843(k)(4)(H)).
(11)Subpart K governs the period of time that firms subject to section 13 of the Bank Holding Company Act ( 12 U.S.C. 1851) have to bring their activities, investments and relationships into compliance with the requirements of such section.
(16)Appendix F contains the Interagency Guidelines Establishing Information Security Standards.