WASHINGTON, D.C. – David Hirschmann, president and CEO of the U.S. Chamber Center for Capital Markets Competitiveness (CCMC), issued the following statement today regarding the decision by the Financial Stability Oversight Council (FSOC) to propose reforms to their process for designating nonbank financial firms as “systemically important financial institutions” (SIFIs):
“Entity designations are a blunt instrument that may do more harm than good. We welcome FSOC’s balanced decision to move towards an activities based approach. By looking at specific activities rather than just focusing on firms, the FSOC will be better able to identify, monitor, and, when needed, work with the appropriate financial regulators to address specific systemic risks.”
“We welcome this step by Secretary Mnuchin and the FSOC members and look forward to reviewing the details. It is also important for the Financial Stability Board, International Association of Insurance Supervisors, and International Organization of Securities Commissions to pursue a similar approach on the global level.”
Since its inception in 2007, the Center for Capital Markets Competitiveness has led a bipartisan effort to modernize and strengthen the outmoded regulatory systems that have governed our capital markets. The CCMC is committed to working aggressively with the administration, Congress, and global leaders to implement reforms to strengthen the economy, restore investor confidence, and ensure well-functioning capital markets.
The U.S. Chamber of Commerce is the world’s largest business federation representing the interests of more than 3 million businesses of all sizes, sectors, and regions, as well as state and local chambers and industry associations.