October 27, 2017

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EO Report: Regulatory Modernization Needed to Enhance Economic Growth

Asset managers and insurers play a critical role in growing and protecting the economy. It’s imperative financial regulation is tailored to protect consumers while providing the needed capital to keep America competitive.

EO Report: Regulatory Modernization Needed to Enhance Economic Growth
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EO Report: Regulatory Modernization Needed to Enhance Economic Growth

FSR Responds to Latest Treasury Executive Order Report on Asset Management and Insurance

 

WASHINGTON—Financial regulation should better recognize the link between investment, risk protection, and economic growth. A report out last evening from Treasury on the Executive Order to examine financial regulations demonstrates a willingness to recalibrate regulation of the asset management and insurance industries to ensure their ability to drive markets and spur the economy.

“Asset managers and insurers play a critical role in growing and protecting the economy. It’s imperative financial regulation is tailored to protect consumers while providing the needed capital to keep America competitive,” said Eric Hoplin, Executive Director of the Financial Services Roundtable.

FSR applauds Treasury’s recommendations to:

  • Delay full implementation of the Department of Labor’s fiduciary rule pending resolution of outstanding issues, and coordinate with the Securities and Exchange Commission and the states;
  • Focus on products and activities to address potential systemic risk of asset management and insurance industries;
  • Rely on liquidity risk management rather than stress testing asset management firms;
  • Harmonize Federal Reserve Board and State capital initiatives for the insurance sector; and
  • Increase transparency in the processes of international standard setting bodies.

FSR looks forward to working with policymakers to facilitate adoption of these recommendations and ensure financial regulations protect consumers while promoting economic growth.

 

 

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About The Author

The Financial Services Roundtable represents the largest integrated financial services companies providing banking, insurance, payment and investment products and services to the American consumer. Member companies participate through the Chief Executive Officer and other senior executives nominated by the CEO. FSR member companies provide fuel for America’s economic engine, accounting for $92.7 trillion in managed assets, $1.2 trillion in revenue, and 2.3 million jobs.

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