• The Financial Stability Oversight Council Takes Action: New Insight into Determination of Which Insurers May Be Subject to Enhanced Oversight
  • February 22, 2011
  • Law Firm: Sutherland Asbill Brennan LLP - Washington Office
  • Recent proposed rulemakings from the Financial Stability Oversight Council (FSOC) and the Board of Governors of the Federal Reserve System (Board) substantially advance the mandate of The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act) to designate nonbank financial companies, like insurance companies, as subject to enhanced supervision and regulation by the Board. Section 113 of the Dodd-Frank Act grants the FSOC the authority to require certain United States and foreign nonbank financial companies, which are defined to include insurers, to be supervised by the Board. Such Board supervision will occur if the FSOC determines that the material financial distress at such company, or the nature, scope, size, scale, concentration, interconnectedness, or mix of the activities at the company, could pose a threat to the financial stability of the United States.