Monday, October 4, 2010

Financial Stability Oversight Council To Seek Comments On Nonbank Financial Cos; ''Volcker Rule'

At its inaugural meeting last week, the Financial Stability Oversight Council approved its bylaw and a transparency policy applicable to the council. As noted in the FSOC's FAQ doc,the FSOC, created under the Dodd-Frank Act, "has a clear statutory mandate that creates for the first time collective accountability for identifying risks and responding to emerging threats to financial stability."

In other action at its Oct. 1 meeting, as noted in this FSOC press release, the council approved release of:
  • an Advance Notice of Proposed Rulemaking (ANPR) on designating nonbank financial companies for heightened supervision, and

  • a Notice and Request for Information (RFI) on the council's "Volcker Rule" (cite: wikipedia) study and recommendations. [The 'Volcker Rule,' according to FSOC, 'will help improve the safety of our nation's banking system by prohibiting proprietary trading activities and certain private fund investments.']
The above documents will be posted on FSOC's website concurrent with being posted in the Federal Register. There will be a 30-day comment period.

Separately, the council also agreed to an 'Integrated Implementation Roadmap' for the council and its independent member agencies, which include, among others, the SEC, CFTC, Fed, FDIC, Treasury, and OCC.

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