Federal Reserve Updates Delegation of Authority Rules

The Federal Reserve Board of Governors ("FRB") adopted amendments to its Rules Regarding Delegation of Authority which would authorize the General Counsel to grant exceptions to the anti-tying provisions under Section 106 of the Bank Holding Company Act.

The revisions would authorize the General Counsel to allow for a bank holding company’s credit card subsidiary to offer credit cards secured by deposits at an affiliate.

The FRB also added a delegation of authority to the Director of the Division of Reserve Bank Operations and Payment Systems. The authorized Division Director, after consulting with relevant division directors, would establish processes for receiving notifications under Regulation HH ("Designated Financial Market Utilities") and provide notice of these processes to affected firms.

The update also includes minor technical corrections to regulatory citations and removes certain reserved provisions.

The amendments took effect March 5, 2026.