The Federal Reserve’s finalized revisions to determining one company’s control over another for purposes of the Bank Holding Company Act and the Home Owners’ Loan Act have been completed and though the final rule codified existing control standards, it simultaneously introduced new concepts and raised critical questions about the industry.

Since these revisions, the industry has continued to grapple with how these revisions should be applied, particularly as it applies to contractual rights and business relationships that may go unnoticed in side letters and separate documentation. Moreover, the many potential definitions of “control” under US banking laws, each of which has its own historical context, has raised a variety of questions.

This CLE course, presented by an experienced regulatory attorney and an experienced corporate attorney will address the Fed’s control rule and the other regulatory definitions of control. The course will also cover the statutory definition of “control” under the Bank Holding Company Act as amended and the recent rules enacted by the Federal Reserve.

The course will address issues such as voting vs. non-voting securities, control of securities, tiered framework, standalone presumptions and presumptions of non-control, BHC partner provisions, grandfathering and lack thereof, regulatory “puts” and alignment with Section 4(c)(6) exception. Fiduciary exceptions, Reg W and FAQ, FR Y-10 reporting issues, Reg O and investment funds, Reg K and portfolio investments, Change in Bank Control Act definition, National Bank Act interpretive definition and state law issues will all be addressed.