What are Financial Market Utility Companies?
Financial Market Utility (FMU) Companies are entities that provide critical infrastructure for the clearing, settlement, and payments systems that support the financial markets. These companies ensure that financial transactions are processed efficiently and securely. Under the Payment, Clearing, and Settlement Supervision Act of 2010, certain FMUs are designated as “systemically important” due to their role in maintaining financial stability.
Because of their significant regulatory oversight and systemic importance, FMU companies are exempt from Beneficial Ownership Information (BOI) reporting requirements under FinCEN regulations. This exemption recognizes that these entities already adhere to stringent regulatory standards designed to protect financial markets and minimize systemic risks.
The exemption ensures that designated FMUs can focus on their essential roles in financial market infrastructure without the additional burden of BOI reporting, given their existing supervision under federal financial regulatory frameworks.
