---
kind: "section"
citation: "12 U.S.C. § 1850a"
title: "12"
title_heading: "Banks and Banking"
number: "1850a"
heading: "Securities holding companies"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/1850a"
units:
  - "Chapter 17 — Bank Holding Companies"
---

# §1850a. Securities holding companies

- (a) **Definitions—** In this section—
  - (1) the term “associated [person](/usc/12/5481.md?p=19) of a securities holding [company](/usc/12/1841.md?p=b)” means a [person](/usc/12/5481.md?p=19) directly or indirectly controlling, controlled by, or under common control with, a securities holding [company](/usc/12/1841.md?p=b);
  - (2) the term “foreign [bank](/usc/12/1841.md?p=c-1)” has the same meaning as in [section 3101(7) of this title](/usc/12/3101.md?p=7);
  - (3) the term “insured [bank](/usc/12/1841.md?p=c-1)” has the same meaning as in [section 1813 of this title](/usc/12/1813.md);
  - (4) the term “securities holding [company](/usc/12/1841.md?p=b)”—
    - (A) means—
      - (i) a [person](/usc/12/5481.md?p=19) (other than a natural [person](/usc/12/5481.md?p=19)) that owns or controls 1 or more brokers or dealers registered with the Commission; and
      - (ii) the associated [persons](/usc/12/5481.md?p=19) of a [person](/usc/12/5481.md?p=19) described in [clause (i)](#a-4-A-i); and
    - (B) does not include a [person](/usc/12/5481.md?p=19) that is—
      - (i) a nonbank financial [company](/usc/12/1841.md?p=b) supervised by the [Board](/usc/12/1841.md?p=f) under title I;[^1]
      - (ii) an insured [bank](/usc/12/1841.md?p=c-1) (other than an institution described in subparagraphs[^2] (D), (F), or (H) of section 2(c)(2) of the [Bank](/usc/12/1841.md?p=c-1) Holding Company Act of 1956 ([12 U.S.C. 1841(c)(2)](/usc/12/1841.md?p=c-2))[^3] or a [savings association](/usc/12/1841.md?p=j);
      - (iii) an [affiliate](/usc/12/1841.md?p=k) of an insured [bank](/usc/12/1841.md?p=c-1) (other than an institution described in subparagraphs[^2] (D), (F), or (H) of section 2(c)(2) of the [Bank](/usc/12/1841.md?p=c-1) Holding Company Act of 1956 ([12 U.S.C. 1841(c)(2)](/usc/12/1841.md?p=c-2))[^3] or an [affiliate](/usc/12/1841.md?p=k) of a [savings association](/usc/12/1841.md?p=j);
      - (iv) a foreign [bank](/usc/12/1841.md?p=c-1), foreign [company](/usc/12/1841.md?p=b), or [company](/usc/12/1841.md?p=b) that is described in [section 3106(a) of this title](/usc/12/3106.md?p=a);
      - (v) a foreign [bank](/usc/12/1841.md?p=c-1) that controls, directly or indirectly, a corporation chartered under section 25A of the Federal Reserve Act ([12 U.S.C. 611](/usc/12/611.md) et seq.); or
      - (vi) subject to comprehensive consolidated supervision by a foreign regulator;
  - (5) the term “supervised securities holding [company](/usc/12/1841.md?p=b)” means a securities holding [company](/usc/12/1841.md?p=b) that is supervised by the [Board](/usc/12/1841.md?p=f) of Governors under this section; and
  - (6) the terms “[affiliate](/usc/12/1841.md?p=k)”, “[bank](/usc/12/1841.md?p=c-1)”, “[bank](/usc/12/1841.md?p=c-1) holding [company](/usc/12/1841.md?p=b)”, “[company](/usc/12/1841.md?p=b)”, “control”, “[savings association](/usc/12/1841.md?p=j)”, and “subsidiary” have the same meanings as in section 2 of the [Bank](/usc/12/1841.md?p=c-1) Holding Company Act of 1956 [[12 U.S.C. 1841](/usc/12/1841.md)].
- (b) **Supervision of a securities holding company not having a bank or savings association affiliate—**
  - (1) **In general—** A securities holding [company](/usc/12/1841.md?p=b) that is required by a foreign regulator or provision of foreign law to be subject to comprehensive consolidated supervision may register with the [Board](/usc/12/1841.md?p=f) of Governors under [paragraph (2)](#b-2) to become a supervised securities holding [company](/usc/12/1841.md?p=b). Any securities holding [company](/usc/12/1841.md?p=b) filing such a registration shall be supervised in accordance with this section, and shall comply with the rules and orders prescribed by the [Board](/usc/12/1841.md?p=f) of Governors applicable to supervised securities holding [companies](/usc/12/1841.md?p=b).
  - (2) **Registration as a supervised securities holding company—**
    - (A) **Registration—** A securities holding [company](/usc/12/1841.md?p=b) that elects to be subject to comprehensive consolidated supervision shall register by filing with the [Board](/usc/12/1841.md?p=f) of Governors such information and documents as the [Board](/usc/12/1841.md?p=f) of Governors, by regulation, may prescribe as necessary or appropriate in furtherance of the purposes of this section.
    - (B) **Effective date—** A securities holding [company](/usc/12/1841.md?p=b) that registers under [subparagraph (A)](#b-2-A) shall be deemed to be a supervised securities holding [company](/usc/12/1841.md?p=b), effective on the date that is 45 days after the date of receipt of the registration information and documents under [subparagraph (A)](#b-2-A) by the [Board](/usc/12/1841.md?p=f) of Governors, or within such shorter period as the [Board](/usc/12/1841.md?p=f) of Governors, by rule or order, may determine.
- (c) **Supervision of securities holding companies—**
  - (1) **Recordkeeping and reporting—**
    - (A) **Recordkeeping and reporting required—** Each supervised securities holding [company](/usc/12/1841.md?p=b) and each [affiliate](/usc/12/1841.md?p=k) of a supervised securities holding [company](/usc/12/1841.md?p=b) shall make and keep for periods determined by the [Board](/usc/12/1841.md?p=f) of Governors such records, furnish copies of such records, and make such reports, as the [Board](/usc/12/1841.md?p=f) of Governors determines to be necessary or appropriate to carry out this section, to prevent evasions thereof, and to monitor compliance by the supervised securities holding [company](/usc/12/1841.md?p=b) or [affiliate](/usc/12/1841.md?p=k) with applicable provisions of law.
    - (B) **Form and contents—**
      - (i) **In general—** Any record or report required to be made, furnished, or kept under this paragraph shall—
        - (I) be prepared in such form and according to such specifications (including certification by a registered public accounting firm), as the [Board](/usc/12/1841.md?p=f) of Governors may require; and
        - (II) be provided promptly to the [Board](/usc/12/1841.md?p=f) of Governors at any time, upon request by the [Board](/usc/12/1841.md?p=f) of Governors.
      - (ii) **Contents—** Records and reports required to be made, furnished, or kept under this paragraph may include—
        - (I) a balance sheet or income statement of the supervised securities holding [company](/usc/12/1841.md?p=b) or an [affiliate](/usc/12/1841.md?p=k) of a supervised securities holding [company](/usc/12/1841.md?p=b);
        - (II) an assessment of the consolidated capital and liquidity of the supervised securities holding [company](/usc/12/1841.md?p=b);
        - (III) a report by an independent auditor attesting to the compliance of the supervised securities holding [company](/usc/12/1841.md?p=b) with the internal risk management and internal control objectives of the supervised securities holding [company](/usc/12/1841.md?p=b); and
        - (IV) a report concerning the extent to which the supervised securities holding [company](/usc/12/1841.md?p=b) or [affiliate](/usc/12/1841.md?p=k) has complied with the provisions of this section and any regulations prescribed and orders issued under this section.
  - (2) **Use of existing reports—**
    - (A) **In general—** The [Board](/usc/12/1841.md?p=f) of Governors shall, to the fullest extent possible, accept reports in fulfillment of the requirements of this paragraph that a supervised securities holding [company](/usc/12/1841.md?p=b) or an [affiliate](/usc/12/1841.md?p=k) of a supervised securities holding [company](/usc/12/1841.md?p=b) has been required to provide to another regulatory agency or a self-regulatory organization.
    - (B) **Availability—** A supervised securities holding [company](/usc/12/1841.md?p=b) or an [affiliate](/usc/12/1841.md?p=k) of a supervised securities holding [company](/usc/12/1841.md?p=b) shall promptly provide to the [Board](/usc/12/1841.md?p=f) of Governors, at the request of the [Board](/usc/12/1841.md?p=f) of Governors, any report described in [subparagraph (A)](#c-2-A), as permitted by law.
  - (3) **Examination authority—**
    - (A) **Focus of examination authority—** The [Board](/usc/12/1841.md?p=f) of Governors may make examinations of any supervised securities holding [company](/usc/12/1841.md?p=b) and any [affiliate](/usc/12/1841.md?p=k) of a supervised securities holding [company](/usc/12/1841.md?p=b) to carry out this subsection, to prevent evasions thereof, and to monitor compliance by the supervised securities holding [company](/usc/12/1841.md?p=b) or [affiliate](/usc/12/1841.md?p=k) with applicable provisions of law.
    - (B) **Deference to other examinations—** For purposes of this subparagraph, the [Board](/usc/12/1841.md?p=f) of Governors shall, to the fullest extent possible, use the reports of examination made by other appropriate Federal or [State](/usc/12/1707.md?p=d) regulatory authorities with respect to any functionally regulated subsidiary or any institution described in subparagraph [(D)](/usc/12/2.md), [(F)](/usc/12/2.md), or [(H)](/usc/12/2.md) of section 2(c)(2) of the [Bank](/usc/12/1841.md?p=c-1) Holding Company Act of 1956 ([12 U.S.C. 1841(c)(2)](/usc/12/1841.md?p=c-2)).
- (d) **Capital and risk management—**
  - (1) **In general—** The [Board](/usc/12/1841.md?p=f) of Governors shall, by regulation or order, prescribe capital adequacy and other risk management standards for supervised securities holding [companies](/usc/12/1841.md?p=b) that are appropriate to protect the safety and soundness of the supervised securities holding [companies](/usc/12/1841.md?p=b) and address the risks posed to financial stability by supervised securities holding [companies](/usc/12/1841.md?p=b).
  - (2) **Differentiation—** In imposing standards under this subsection, the [Board](/usc/12/1841.md?p=f) of Governors may differentiate among supervised securities holding [companies](/usc/12/1841.md?p=b) on an individual basis, or by category, taking into consideration the requirements under [paragraph (3)](#d-3).
  - (3) **Content—** Any standards imposed on a supervised securities holding [company](/usc/12/1841.md?p=b) under this subsection shall take into account—
    - (A) the differences among types of business activities carried out by the supervised securities holding [company](/usc/12/1841.md?p=b);
    - (B) the amount and nature of the financial assets of the supervised securities holding [company](/usc/12/1841.md?p=b);
    - (C) the amount and nature of the liabilities of the supervised securities holding [company](/usc/12/1841.md?p=b), including the degree of reliance on short-term funding;
    - (D) the extent and nature of the off-balance sheet exposures of the supervised securities holding [company](/usc/12/1841.md?p=b);
    - (E) the extent and nature of the transactions and relationships of the supervised securities holding [company](/usc/12/1841.md?p=b) with other financial [companies](/usc/12/1841.md?p=b);
    - (F) the importance of the supervised securities holding [company](/usc/12/1841.md?p=b) as a source of [credit](/usc/12/5481.md?p=7) for households, businesses, and [State](/usc/12/1707.md?p=d) and local governments, and as a source of liquidity for the financial system; and
    - (G) the nature, scope, and mix of the activities of the supervised securities holding [company](/usc/12/1841.md?p=b).
  - (4) **Notice—** A capital requirement imposed under this subsection may not take effect earlier than 180 days after the date on which a supervised securities holding [company](/usc/12/1841.md?p=b) is provided notice of the capital requirement.
- (e) **Other provisions of law applicable to supervised securities holding companies—**
  - (1) **Federal Deposit Insurance Act—** Subsections (b), (c) through (s), and (u) of [section 1818 of this title](/usc/12/1818.md) shall apply to any supervised securities holding [company](/usc/12/1841.md?p=b), and to any subsidiary (other than a [bank](/usc/12/1841.md?p=c-1) or an institution described in subparagraph [(D)](/usc/12/2.md), [(F)](/usc/12/2.md), or [(H)](/usc/12/2.md) of section 2(c)(2) of the [Bank](/usc/12/1841.md?p=c-1) Holding Company Act of 1956 ([12 U.S.C. 1841(c)(2)](/usc/12/1841.md?p=c-2))) of a supervised securities holding [company](/usc/12/1841.md?p=b), in the same manner as such subsections apply to a [bank](/usc/12/1841.md?p=c-1) holding [company](/usc/12/1841.md?p=b) for which the [Board](/usc/12/1841.md?p=f) of Governors is the [appropriate Federal banking agency](/usc/12/1841.md?p=n). For purposes of applying such subsections to a supervised securities holding [company](/usc/12/1841.md?p=b) or a subsidiary (other than a [bank](/usc/12/1841.md?p=c-1) or an institution described in subparagraph [(D)](/usc/12/2.md), [(F)](/usc/12/2.md), or [(H)](/usc/12/2.md) of section 2(c)(2) of the [Bank](/usc/12/1841.md?p=c-1) Holding Company Act of 1956 ([12 U.S.C. 1841(c)(2)](/usc/12/1841.md?p=c-2))) of a supervised securities holding [company](/usc/12/1841.md?p=b), the [Board](/usc/12/1841.md?p=f) of Governors shall be deemed the [appropriate Federal banking agency](/usc/12/1841.md?p=n) for the supervised securities holding [company](/usc/12/1841.md?p=b) or subsidiary.
  - (2) **Bank Holding Company Act of 1956—** Except as the [Board](/usc/12/1841.md?p=f) of Governors may otherwise provide by regulation or order, a supervised securities holding [company](/usc/12/1841.md?p=b) shall be subject to the provisions of the [Bank](/usc/12/1841.md?p=c-1) Holding Company Act of 1956 ([12 U.S.C. 1841](/usc/12/1841.md) et seq.) in the same manner and to the same extent a [bank](/usc/12/1841.md?p=c-1) holding [company](/usc/12/1841.md?p=b) is subject to such provisions, except that a supervised securities holding [company](/usc/12/1841.md?p=b) may not, by reason of this paragraph, be deemed to be a [bank](/usc/12/1841.md?p=c-1) holding [company](/usc/12/1841.md?p=b) for purposes of section 4 of the [Bank](/usc/12/1841.md?p=c-1) Holding Company Act of 1956 ([12 U.S.C. 1843](/usc/12/1843.md)).

## Footnotes

[^1]: See References in Text note below.
[^2]: So in original. Probably should be “subparagraph”.
[^3]: So in original. Another closing parenthesis probably should appear.

## Source credit

(Pub. L. 111–203, title VI, § 618, July 21, 2010, 124 Stat. 1616.)

## Notes

### Editorial Notes

### References in Text

Title I, referred to in subsec. (a)(4)(B)(i), is title I of Pub. L. 111–203, July 21, 2010, 124 Stat. 1391, known as the Financial Stability Act of 2010, which is classified principally to subchapter I (§ 5311 et seq.) of chapter 53 of this title. For complete classification of title I to the Code, see Short Title note set out under section 5301 of this title and Tables.

Section 25A of the Federal Reserve Act, referred to in subsec. (a)(4)(B)(v), popularly known as the Edge Act, is classified to subchapter II (§ 611 et seq.) of chapter 6 of this title. For complete classification of this Act to the Code, see Short Title note set out under section 611 of this title and Tables.

The Bank Holding Company Act of 1956, referred to in subsec. (e)(2), is act May 9, 1956, ch. 240, 70 Stat. 133, which is classified principally to this chapter. For complete classification of this Act to the Code, see Short Title note set out under section 1841 of this title and Tables.

### Codification

Section was enacted as part of the Bank and Savings Association Holding Company and Depository Institution Regulatory Improvements Act of 2010, and also as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act, and not as part of the Bank Holding Company Act of 1956 which comprises this chapter.

### Statutory Notes and Related Subsidiaries

### Effective Date

Section effective 1 day after July 21, 2010, except as otherwise provided, see section 4 of Pub. L. 111–203, set out as a note under section 5301 of this title.

### Definitions

For definitions of terms used in this section, see section 5301 of this title.