The Senate has passed a bill extending the term of the Financial Stability Oversight Council (FSOC) independent member with insurance expertise.
Officials said the Financial Stability Oversight Council Insurance Member Continuity Act
was introduced by Reps. Maxine Waters (D-CA) and Randy Hultgren (R-IL).
“I applaud my colleagues in the Senate for passing this commonsense legislation that would allow the Financial Stability Oversight Council to continue to have a member with insurance expertise and ensure that the FSOC has a complete roster of voting members,” Waters said. “The FSOC plays a crucial role in keeping our financial system safe, and this technical correction is an example of bipartisan cooperation to improve the Dodd–Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) and the functioning of our regulatory system.”
Lawmakers said the legislation allows the FSOC independent member with insurance expertise to remain in the position past his or her term for the earlier of 18 months or when a successor is confirmed. The terms are similar to those of a Commissioner at the Securities and Exchange Commission.
The FSOC was created by Dodd-Frank, officials said, for the purpose of identifying risks to financial stability that could arise from the material financial distress, failure or ongoing activities of large, interconnected bank holding companies, as well as nonbanks.