SIFMA today released the following statement from President and CEO Tim Ryan after the Financial Stability Oversight Council (FSOC) finalized rules to codify the process by which non-bank financial institutions would be designated as systemically important financial institutions (SIFIs) and subject to heighted regulatory oversight by the Federal Reserve.
“Protecting against systemic risk was the primary focus of Dodd-Frank, and today’s final rules are a critical part of the new rulebook that will protect the financial system, our economy and American investors. We applaud the FSOC for providing a great deal more detail and transparency on how the designation process will work. The final rules also clarify the appeal process non-bank institutions can use if initially designated. We are also pleased to see that the FSOC has said that they will rely on publicly available data at the outset of their data collect efforts during the designation process. These are positive improvements to the original proposal.
“While the FSOC does not provide any specific path forward in how they will treat asset managers, we appreciate the FSOC’s acknowledgement that while they will preliminarily rely on existing criteria, they will need to do more in this area and will be releasing additional guidance in the future. The final rules also appropriately clarify how foreign institutions with U.S. operations will be treated. We look forward to continuing to work with the FSOC as they now begin the formal process of designating non-bank financial institutions under Dodd-Frank.”