Regulatory Alerts2026-08-04 | 2026-15774Added
Regulatory Modernization and Relief for Mutual Holding Companies
The Board of Governors of the Federal Reserve System proposes amendments to Regulation MM (12 CFR part 239) and the capital rule (12 CFR part 217) to modernize the regulatory framework for mutual holding companies (MHCs). The proposal would eliminate certain dividend waiver requirements, reduce burdens associated with conversions from mutual-to-stock form, revise post-conversion restrictions, and eliminate the requirement that subsidiary holding companies of MHCs obtain federal charters. Additionally, the proposal clarifies that certain mutual capital instruments may qualify as regulatory capital and codifies model term sheets for mutual capital certificates as appendices to the regulation. Comments on this notice of proposed rulemaking must be submitted by October 5, 2026.