Board of Governors of the Federal Reserve Adopts Regulation Q Amendments

The Federal Reserve Board amended its regulatory capital framework ("Regulation Q") to clarify how the definition of common equity tier 1 capital applies to ownership interests issued by depository institution holding companies that are structured as partnerships or limited liability companies. Amended Regulation Q does not immediately apply to holding companies that are non-business trusts or employee stock ownership plans. The Board indicated that it would soon provide further amended Regulation Q guidance for these types of entities.

The final rule is effective on January 1, 2016, but to provide sufficient time for firms to review and revise their capital structures, the final rule extends the applicable compliance date with the Board's revised capital framework to July 1, 2016.