Bipartisan legislation introduced by U.S. Rep. Randy Hultgren (R-IL) would address a technical error in the Dodd-Frank Act that creates uncertainty about the Financial Stability Oversight Council’s (FSOC) independent member with insurance expertise.
The Financial Stability Oversight Council Insurance Member Continuity Act would clarify that the FSOC independent member with insurance expertise can continue to serve in the position after their original term expires until a new member is confirmed.
“I am proud to work in a bipartisan manner to ensure insurance expertise maintains a strong voice with financial regulators in Washington so those regulators can make informed and prudent policy determinations,” said Hultgren, a member of the House Financial Services Committee. “Illinois is home to dozens of insurance companies, employing thousands of individuals in my district and across the state. My state has carefully crafted regulations that balance policyholder protection without stifling economic growth.”
Under the bill, the independent member with insurance expertise would be allowed to remain in the position for an additional 18 months, or until a successor is confirmed, whichever is shorter.
The term limit, as written in Dodd-Frank, was the result of a technical error, not legislative intent. The term for the current FSOC independent member with insurance expertise is scheduled to expire on Sept. 30.
Hultgren introduced the bipartisan bill with Financial Services Committee Ranking Member Maxine Waters (D-CA).