WASHINGTON (8/19/13)--Large holding companies and certain nonbank financial entities will soon be assessed fees to cover the cost of supervision and regulation, the Federal Reserve reported on Friday.
The assessments will be charged to bank holding companies and savings and loan holding companies with $50 billion or more in assets, and board-supervised nonbank financial companies, the Fed said.
Collected fees will be transferred to the U.S. Treasury. The Fed's final rule is required by the Dodd-Frank Wall Street Reform Act.
According to the Fed, the rule:
Addresses how the Fed determines which companies will be charged;
Estimates applicable regulatory and supervisory expenses;
Determines each company's assessment fee; and
Bills for and collects the assessment fees.
The final rule is scheduled to become effective Oct. 25, and institutions that will be subject to the fee assessment will be contacted around that time. Payments for the 2012 assessment period will be due no later than Dec. 15, the Fed said. The regulator estimates around $440 million will be collected from 70 companies during this assessment period.
Going forward, affected institutions will be notified of their assessment amounts no later than June 30 of the year following the assessment period. Payments will be due by Sept. 15 of each year.
For the full Fed release, use the resource link.