Friday, May 14, 2010

NASAA Joins State Banking and Insurance Regulators in Calling for Non-Voting FSOC Membership

The North American Securities Administrators Association (NASAA) has joined the National Association of Insurance Commissioners and the Conference of State Bank Supervisors in calling for non-voting membership for state banking, insurance, and securities regulators on the proposed Financial Stability Oversight Council (FSOC). In a joint letter yesterday to Senators Patty Murray (D-WA) and Susan Collins (R-ME), the organizations thanked the lawmakers for their efforts in sponsoring amendments that would provide representation for state regulators on the FSOC that would be established under Section 111 of the Restoring American Financial Stability Act of 2010 (S. 3217).

The organizations said that including state regulators on the FSOC is both necessary and appropriate because "[s]tate banking, insurance, and securities regulators are on the front lines of financial regulation and bring information and perspectives that are necessary components of an effective regulatory structure." "By including state regulators in the FSOC, your amendments create a more comprehensive and efficient approach that will benefit from access to all relevant information regarding the accumulation of risk in our financial system," the organizations stated.