SIFMA today released the following statement from Kenneth E. Bentsen, Jr., executive vice president, public policy and advocacy, following the release by the Financial Stability Oversight Council (FSOC) of their designation criteria for non-bank financial companies to be identified as systemically important financial institutions (SIFIs).
“While we must still review the full text of the proposal, today’s proposal is another step towards strengthening the safety, soundness, and resiliency of financial institutions and for improving the government’s capacity to monitor and reduce systemic risk. Importantly, we are pleased the FSOC is taking a serious and thoughtful approach by re-proposing this rulemaking, seeking further comment on a very complex process.
“As stated in our November 2010 comment letter to the FSOC, we believe that the designation process for non-bank financial companies should feature both quantitative and qualitative measures in equal weight across the industry. We look forward to continuing to work with the FSOC on refining this designation process along the lines of the principles SIFMA laid out in its letter.”
SIFMA’s November 2010 letter to the FSOC can be found at the following link: http://www.sifma.org/issues/item.aspx?id=22128