Bipartisan legislation introduced by U.S. Rep. Randy Hultgren (R-IL) to ensure that the Financial Stability Oversight Council (FSOC) continues to function efficiently was signed into law by President Donald Trump on Wednesday.
A technical glitch in the Dodd-Frank Wall Street Reform and Consumer Protection Act made it unclear whether the FSOC independent member with insurance experience could continue to serve after the individual’s initial term expires. The legislation, the Financial Stability Oversight Council Insurance Member Continuity Act, corrects that problem.
The bill signed into law addresses the issue by clarifying that the independent member with insurance experience can continue to serve for 18 months, or until a successor is confirmed, after a term expires.
“I am very pleased President Trump has signed my bipartisan legislation into law,” Hultgren, a member of the House Financial Services Committee, said. “Given the several recent natural disasters hitting our country’s shores, it is now extremely important that we have someone with a deep understanding of our insurance markets, and how they interact with our entire financial system, to continue serving as a voting member of FSOC.”
Prior to the bill’s enactment, the term for the current independent member with insurance experience post was slated to expire on Saturday, and the post would have been left vacant.
“The Financial Stability Oversight Council Insurance Member Continuity Act ensures that this key regulatory body is able to benefit from the perspective of a voting member with insurance expertise without any unnecessary lapses,” Hultgren said. “I am pleased the individual currently filling this position, Roy Woodall, has agreed to continue to serve in his role.”