On March 20, 2018, the U.S. House of Representatives passed a bill, referred to as the Alleviating Stress Test Burdens to Help Investors Act (the Bill), that would exempt non-bank financial companies not under the supervision of the Board of Governors of the Federal Reserve System from the Dodd-Frank Wall Street Reform and Consumer Protection Act (the Dodd-Frank Act) stress-testing requirements, in an effort to relieve such entities of burdensome requirements that are “structured and designed for banks and do not appropriately reflect risks to nonbanks.” If adopted, the Bill would amend the Dodd-Frank Act to remove a requirement that the SEC and the CFTC issue regulations to require nonbank financial companies subject to their respective jurisdictions, which includes mutual funds and investment advisers with respect to the SEC, with $10 billion or more in assets to conduct periodic stress tests. In addition, although it would no longer be required under the Dodd-Frank Act, the Bill would still allow the SEC and the CFTC to issue such regulations. The Bill will next go to the U.S. Senate for consideration. 

The text of the Bill is available at: