Emmer’s FSOC Reform Act would subject the FSOC to the congressional appropriations process, increasing oversight, transparency and accountability. FSOC was established under the Dodd-Frank Act in 2010 to identify risks and respond to financial stability threats. The FSOC has the power to designate financial institutions as “systemically important,” which may result in greater regulatory burdens.
“Regulators in Washington need to be accountable to the American people,” Emmer said. “A recent review conducted by the Financial Services Committee highlighted the ‘arbitrary and inconsistent’ nature of the FSOC’s actions and reiterated the need for improved oversight and review of our federal regulators.”
The bill would give Congress the authority to approve the budget for the FSOC and the Office of Financial Research (OFR), which is part of the U.S. Treasury. The OFR provides research and data for FSOC.
“The financial services industry plays a critical role in creating the capital and opportunities that drives Minnesota’s, and the nation’s, economy forward. I look forward to building on the progress this legislation made in the 114th Congress and ensuring federal overreach does not limit the ability of Minnesotan businesses to grow and thrive,” Emmer said.
The legislation would also create quarterly reporting requirements for the OFR, and require it to provide at least a 90 day public notice and comment period before issuing any report, rule, or regulation.
This increased oversight is designed to ensure safe and competitive, financial markets and improve coordination and communication between regulators, Congress, financial institutions and consumers, Emmer said.