On December 4, 2015, the US Board of Governors of the Federal Reserve System issued a final rule clarifying the application of the revised capital framework, originally issued in June 2013, to depository institution holding companies that are organized as non-stock entities, such as limited liability companies and partnerships. The final rule illustrates how capital instruments that are issued by firms that are not organized as traditional stock corporations may qualify as regulatory capital under the revised regulatory capital framework. The final rule, which is substantively similar to the proposed rule issued in December 2014, goes into effect January 1, 2016. Separately, the final rule notes the Federal Reserve Board’s intention to issue separate regulatory capital rules to clarify how: (i) depository institution holding companies that are employee stock ownership plans; and (ii) savings and loan holding companies that are personal or family trusts, rather than business trusts, in each case, will be treated under the capital rules.

The final rule is available at: http://www.federalreserve.gov/newsevents/press/bcreg/bcreg20151204a1.pdf.