Notification for Prior Approval to Engage Directly or Indirectly in Certain Nonbanking Activities
The notification collects information on proposed nonbanking activities by bank holding companies (BHCs). Different levels of detail are provided from BHCs depending on whether they meet certain qualifying criteria and the types of nonbanking activities in which they wish to engage. The complete notification procedure requires the most detail, including information on the activities to be conducted, the companies involved in the activities, public benefits, and financial and managerial information. Less detail is required under the expedited notification and the post-consummation procedures. The information requirements for each procedure are specified in Regulation Y.
Purpose: The Federal Reserve uses the information to fulfill its responsibilities under the Bank Holding Company Act to evaluate each proposed transaction as to its permissibility, competitive effects, adequacy of financial and managerial resources, and net public benefits.
Implementation of the nonbanking provisions of the 1970 amendments to the Bank Holding Company Act led to the institution of the FR Y-4 application in June 1971. In April 1999, the Board modified this form for Regulation Y changes by streamlining certain nonbanking notice procedures and reducing significantly regulatory burden in the notice review process.
BHCs seeking approval to acquire the assets or shares of a nonbank company or to engage de novo in nonbank activities.
Last Update: August 1, 2018