Washington, D.C. – This week, Congressman Emmer (MN-06) reintroduced the Financial Stability Oversight Council (FSOC) Reform Act, H.R. 1459. This legislation would increase oversight, transparency and accountability by subjecting the FSOC to the Congressional appropriations process. Additionally, this legislative change will improve coordination and communication between regulators, Congress, financial institutions and consumers.
“Regulators in Washington need to be accountable to the American people,” said Emmer. “A recent review conducted by the Financial Services Committee highlighted the ‘arbitrary and inconsistent’ nature of the FSOC’s actions and reiterated the need for improved oversight and review of our federal regulators. The financial services industry plays a critical role in creating the capital and opportunities that drives Minnesota’s, and the nation’s, economy forward. I look forward to building on the progress this legislation made in the 114th Congress and ensuring federal overreach does not limit the ability of Minnesotan businesses to grow and thrive.”
The FSOC was created in 2010 under the Dodd-Frank Act. The FSOC has the power to designate financial institutions as “systemically important” which results in greater regulatory burdens. Unfortunately, the designation process has lacked transparency thus far.
The legislation would give Congress the power to approve the budget for the FSOC and the Office of Financial Research (OFR), create quarterly reporting requirements for the OFR, and require the OFR to provide at least a 90 day public notice and comment period before issuing any report, rule, or regulation. This increased oversight and transparency would ensure safe and competitive, financial markets, to help Americans purchase homes, cars and have access to higher education.
Congressman Tom Emmer represents Minnesota’s Sixth Congressional District and is a member of the Financial Services Committee.
The Financial Stability Oversight Council Reform Act is H.R. 1459. Click here to read the full text.
This legislation was Emmer’s first piece of legislation to pass out of the House of Representatives during the 114th Congress.