This story appeared in Bank Digest.
The Federal Reserve Board has approved a joint agency proposed rulemaking that would implement the incentive compensation provisions of Section 956 of the Dodd-Frank Act. Section 956 requires the Fed, Office of the Comptroller of the Currency, Federal Deposit Insurance Corporation, Federal Housing Finance Agency, National Credit Union Administration, and Securities and Exchange Commission to prohibit certain types of incentive-based compensation arrangements and to require the disclosure of information on incentive-based compensation arrangements to the appropriate federal regulator. The agencies will jointly publish the proposed rule, which replaces a never-acted-upon 2011 proposal.
The preamble and regulatory text approved by the Fed are available on the agency's website, but the Fed said it would delay publication of this material in the Federal Register to allow all of the agencies to consider the proposal. Comments are due by July 22, 2016.