---
kind: "section"
citation: "12 U.S.C. § 5370"
title: "12"
title_heading: "Banks and Banking"
number: "5370"
heading: "Safe harbor"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/5370"
units:
  - "Chapter 53 — Wall Street Reform and Consumer Protection"
  - "Subchapter I — Financial Stability"
  - "Part C — Additional Board of Governors Authority for Certain Nonbank Financial Companies and Bank Holding Companies"
---

# §5370. Safe harbor

- (a) **Regulations—** The [Board of Governors](/usc/12/5301.md?p=3) shall promulgate regulations on behalf of, and in consultation with, the [Council](/usc/12/5301.md?p=8) setting forth the criteria for exempting certain types or classes of [U.S. nonbank financial companies](/usc/12/5311.md?p=a-4-B) or [foreign nonbank financial companies](/usc/12/5311.md?p=a-4-A) from supervision by the [Board of Governors](/usc/12/5301.md?p=3).
- (b) **Considerations—** In developing the criteria under [subsection (a)](#a), the [Board of Governors](/usc/12/5301.md?p=3) shall take into account the factors for consideration described in subsections (a) and (b) of [section 5323 of this title](/usc/12/5323.md) in determining whether a [U.S. nonbank financial company](/usc/12/5311.md?p=a-4-B) or [foreign nonbank financial company](/usc/12/5311.md?p=a-4-A) shall be supervised by the [Board of Governors](/usc/12/5301.md?p=3).
- (c) **Rule of construction—** Nothing in this section shall be construed to require supervision by the [Board of Governors](/usc/12/5301.md?p=3) of a [U.S. nonbank financial company](/usc/12/5311.md?p=a-4-B) or [foreign nonbank financial company](/usc/12/5311.md?p=a-4-A), if such [company](/usc/12/5381.md?p=a-5) does not meet the criteria for exemption established under [subsection (a)](#a).
- (d) **Revisions—**
  - (1) **In general—** The [Board of Governors](/usc/12/5301.md?p=3) shall, in consultation with the [Council](/usc/12/5301.md?p=8), review the regulations promulgated under [subsection (a)](#a), not less frequently than every 5 years, and based upon the review, the [Board of Governors](/usc/12/5301.md?p=3) may revise such regulations on behalf of, and in consultation with, the [Council](/usc/12/5301.md?p=8) to update as necessary the criteria set forth in such regulations.
  - (2) **Transition period—** No revisions under [paragraph (1)](#d-1) shall take effect before the end of the 2-year period after the date of publication of such revisions in final form.
- (e) **Report—** The Chairman of the [Board of Governors](/usc/12/5301.md?p=3) and the [Chairperson](/usc/12/5311.md?p=a-2) of the [Council](/usc/12/5301.md?p=8) shall submit a joint report to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives not later than 30 days after the date of the issuance in final form of regulations under [subsection (a)](#a), or any subsequent revision to such regulations under [subsection (d)](#d), as applicable. Such report shall include, at a minimum, the rationale for exemption and empirical evidence to support the criteria for exemption.

## Source credit

(Pub. L. 111–203, title I, § 170, July 21, 2010, 124 Stat. 1435.)