The U.S. House Committee on Financial Services has advanced the Supervisory Modifications for Appropriate Risk-based Testing (SMART) Act of 2025 (H.R. 4437), a bipartisan bill that would reduce examination burdens for qualifying well-managed, well-capitalized financial institutions by moving to a more risk-based supervisory approach. The measure is now headed to the full House for a vote. Under the bill, qualifying institutions would receive full-scope on-site examinations only every other examination cycle, with interim reviews focused on key risk areas. It would also allow institutions to request that certain examinations, including safety and soundness, consumer compliance, and cybersecurity, be conducted concurrently to reduce overlap. Regulators would be directed to issue implementing rules within 12 months, while retaining authority to conduct additional reviews at any time; exceptions would apply for institutions with recent enforcement actions or major changes in control.
U.S. Financial Services Committee 2025-10-03
U.S. House Committee on Financial Services advances SMART Act to streamline examinations for well-capitalized financial institutions
The U.S. House Committee on Financial Services has advanced the Supervisory Modifications for Appropriate Risk-based Testing (SMART) Act of 2025, aimed at reducing examination burdens for well-managed, well-capitalized financial institutions through a risk-based supervisory approach. The bill proposes biennial full-scope on-site examinations and allows for concurrent examinations to minimize overlap. Regulators must issue implementing rules within 12 months, except for institutions with recent enforcement actions or major changes in control.