Synchrony Financial has received regulatory approval for moves that will let the credit card lender cut ties with its longtime parent, General Electric.

The Federal Reserve Board on Wednesday signed off on Synchrony’s application to operate as a stand-alone savings and loan holding company, among other changes.

The Fed’s approvals had been expected. They clear a path for GE, which owns 85% of Synchrony, to offer its shareholders the chance to exchange their GE stock for shares in the split-off company.

“This approval is a critical step in becoming a stand-alone business,” Synchrony Chief Executive Margaret Keane said in a press release.

Stamford, Conn.-based Synchrony held an initial public offering in July 2014. The IPO was the first in a series of steps by GE aimed at downsizing the firm’s financial services footprint and escaping the regulatory scrutiny that comes with being designated as systemically important.

“We are pleased that Synchrony has received this key approval from the Federal Reserve Board,” GE CEO Jeffrey Immelt said in a separate press release Wednesday. “GE Capital is continuing to reduce the size and complexity of the business and is becoming less systemically important.”

Neither company gave an indication Wednesday of when the separation is likely to happen, though GE said that it will discuss details of the proposed exchange offer during its quarterly earnings call this Friday.

During an investor conference last month, Keane said that the separation from GE was on track to be completed before the end of the year.

Synchrony, which has $76 billion in assets and specializes in store-branded credit cards, is scheduled to report its earnings on Friday.

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