The U.S. Treasury Department made a series of recommendations in its recent report including highlighting opportunities for insurance regulatory reform.
There are serious concerns about the systemic risks posed by the non-bank sector and these concerns should be addressed through proper regulation.
Dodd-Frank does not include many of the details that are defined for the other voting members of FSOC, including anything on the Independent Member’s specific duties.
Amid the uncertainty of timing, Trump’s appointments will have a major impact on the future of the post-crisis financial regulatory structure.
Major changes could be in store for the post-crisis regulatory structure that has been built over the past eight years.
The legislation would create a new office that would be both less powerful, and in some ways more independent, than the two entities it would succeed.
The decision leaves open questions of what another SIFI must do to achieve de-designation, and the impact that GE Capital’s designation had on the financial system.
Insurance companies had been regulated almost exclusively by state insurance departments until Dodd-Frank, which created FSOC’s designation authority.