Third Report of U.S. Treasury on Principles for Financial Regulation
The U.S. Department of the Treasury 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. The evaluation of the U.S. Treasury is focused on four key areas: properly evaluating systemic risk, ensuring effective regulation and government processes, rationalizing international engagement, and promoting economic growth and informed choices.
In the report, the U.S. Treasury identified numerous ways to improve the regulatory framework for asset managers and insurance companies and the products and services they offer. It also found areas to improve the efficiency of regulations and government processes and its recommendations include:
- Amending rules to avoid dual registration requirements for investment companies
- Increasing consumer choice by allowing annuities as investment options for employer-sponsored retirement plans
- Supporting legislative action to eliminate the statutory stress testing requirement for investment advisers and investment companies
- Convening a federal agency-wide task force to focus on policies related to long-term care insurance
- Reconsidering the Department of Housing and Urban Development's disparate impact rule and its impact on the availability of insurance
- Coordinating insurance regulations to reduce or eliminate inconsistencies between existing data calls on terrorism risk insurance
- Improving information sharing within the insurance industry
This is the third report in a series of four expected reports in response to the Executive Order 13772, which was issued by President Trump on February 03 and which calls on the Treasury to identify laws and regulations that are inconsistent with the Core Principles for financial regulation set forth in the Executive Order. The banking and capital markets reports have already been published, with the fourth report slated to be published on nonbank financial institutions, financial technology, and financial innovation.
Related Links
Keywords: Americas, US, Insurance, Securities, Asset Management, Core Principles, Regulatory Framework, US Treasury
Previous Article
Hyun Song Shin of BIS on Institutional and Systemic LeverageRelated Articles
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.
BIS Bulletin Examines Cognitive Limits of Large Language Models
The use cases of generative AI in the banking sector are evolving fast, with many institutions adopting the technology to enhance customer service and operational efficiency.
ECB is Conducting First Cyber Risk Stress Test for Banks
As part of the increasing regulatory focus on operational resilience, cyber risk stress testing is also becoming a crucial aspect of ensuring bank resilience in the face of cyber threats.
EBA Continues Momentum Toward Strengthening Prudential Rules for Banks
A few years down the road from the last global financial crisis, regulators are still issuing rules and monitoring banks to ensure that they comply with the regulations.
EU and UK Agencies Issue Updates on Final Basel III Rules
The European Commission (EC) recently issued an update informing that the European Council and the Parliament have endorsed the Banking Package implementing the final elements of Basel III standards