WASHINGTON – Today, the U.S. House of Representatives voted on a bipartisan basis to pass the Financial Stability Oversight Council (FSOC) Improvement Act, which ensures greater predictability and transparency in the guidance governing the designation of nonbank financial companies as Systemically Important Financial Institutions (SIFIs). Mike Flood, Senior Vice President, Center for Capital Markets Competitiveness at the U.S. Chamber of Commerce issued the following statement:
“We commend the House’s passage of the bipartisan FSOC Improvement Act, as well as the leadership of Reps. Bill Foster and Bill Huizenga on this critical legislation. This bill will bring much needed stability and predictability to the FSOC’s authority on nonbank financial companies following years of regulatory whiplash. Designating a nonbank financial company as a SIFI burdens nonbanks with steep regulatory requirements and distorts the competitive landscape, and the FSOC Improvement Act appropriately ensures that this designation is reserved as a tool of last resort. We are heartened by the bipartisan support this crucial legislation received in the House and urge support for its companion bill in the Senate.”
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