Federal Reserve Posts FAQs on New Control Rule

On September 30, the Federal Reserve posted FAQs on its recently adopted control rule (Control Rule). The FAQs cover the calculation of issuer’s shareholders’ equity under the Control Rule, actions to be taken if an investment previously considered to be noncontrolling triggers one or more of the presumptions of control in the Control Rule, and whether certain contractual provisions would be considered limiting contractual rights under the Control Rule.