While the difficulties with this approach went beyond the false precision that it would have given the surcharge, that was certainly one consideration in declining to adopt this approach. 31  Another important provision requiring interpretation of financial stability as a legal standard is the designation of systemically important nonbank institutions by the FSOC.
As noted earlier, this is an instance in which an evaluation of financial stability effects is the direct test for action. In implementing this authority the FSOC took a methodical, comparative approach. Details can be found in Financial Stability Oversight Council (2012), “‘Authority to Require Supervision and Regulation of Certain Nonbank Financial Companies,”‘ Federal Register, vol. 77 (April 11), pp. 21637.