The US Department of the Treasury today released a report that examines the current regulatory framework for the asset management and insurance industries and makes recommendations to ensure the regulatory framework is aligned with the Administration’s Core Principles for financial regulation.
Treasury’s evaluation focuses on four key areas: the proper evaluation of systemic risk, ensuring effective regulation and government processes, rationalizing international engagement, and promoting economic growth and informed choices.
The report is in response to Presidential executive order issued in February , which calls on Treasury to identify laws and regulations that are inconsistent with the Core Principles for financial regulation set forth in the Executive Order.
Recommendations include:
- Adopting a principles-based approach to liquidity risk management rulemaking for registered investment companies
- Moving forward with a rule for the approval of “plain vanilla” exchange-traded funds
- Realigning the role of the Federal Insurance Office around five pillars of focus, and improving its coordination with state insurance regulators and transparency with the insurance industry
- Reducing duplicative and inefficient oversight of savings and loan holding companies that own insurance companies, by improving coordination and collaboration between the Board of Governors of the Federal Reserve System and state insurance regulators
- Adopting uniform state data security standards and breach notification requirements based of the National Association of Insurance Commissioners’ Insurance Data Security Model Law
- Supporting legislative action to eliminate the statutory stress testing requirement for investment advisers and investment companies