Financial Services Committee Unanimously Passes Hultgren-Waters Technical Fix to the Dodd-Frank Act
Washington, DC —Today the Financial Services Committee unanimously passed H.R. 3110, the Financial Stability Oversight Council Insurance Member Continuity Act, bipartisan legislation introduced by U.S. Representatives Randy Hultgren (R-IL-14) and Ranking Member Maxine Waters (D-CA-43). The bill strengthens the work of the Financial Stability Oversight Council (FSOC) by permitting its independent member with insurance expertise to continue serving in his or her position. There is widespread agreement that the provision as written in the 2010 Dodd-Frank Act was not the legislative intent.
“In Illinois, we have a very robust insurance market because of the carefully crafted regulatory system we have developed in the state over the years. This allows great companies to thrive, and protects the interests of their policyholders. This might not be the case if the FSOC lacks sufficient understanding of our insurance markets and regulatory system,” said Rep. Hultgren during the committee markup. “My legislation would simply bring continuity with other FSOC voting members for when a term ends – it provides a mechanism to keep this important voice on the council.
“I am very grateful for the support of the lead cosponsor of this bill, Ranking Member Waters, and the support of so many of our Republican and Democrat colleagues. I would also like to thank Chairman Hensarling for including the bill in the markup today. I urge support of this legislation, and I am hopeful it can move swiftly to the President’s desk.”
The Financial Stability Oversight Council Insurance Member Continuity Act is a technical correction to the Dodd-Frank Act. Under current law, it is unclear if someone can serve in this position as an acting official once the term of the FSOC independent member with insurance expertise expires. The term of the individual currently serving in this position expires on September 30 of this year. The legislation allows the FSOC independent member with insurance expertise to remain past his or her term for the earlier of (1) 18 months or (2) when a successor is confirmed.