Authority to Require Supervision & Regulation of Certain Nonbank Financial Companies

SIFMA provides comments to Financial Stability Oversight Council (FSOC) on proposed rulemaking regarding authority to require supervision and regulation of certain nonbank financial companies, Docket No. FSOC-2011-0001.  The proposed rulemaking would implement the criteria and process that should inform the FSOC’s designation of nonbank financial companies for supervision by the Board of Governors of the Federal Reserve System under Section 113 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). SIFMA was an early advocate of a systemic risk regulator following the financial crisis.  SIFMA shares its observations and recommendation on the proposal, particularly relating to the approach to designating nonbank financial firms, the criteria planned for the determinations, the notification to firms being considered, and measures to ensure the confidentiality of the information provided by the nonbank firms.