WASHINGTON BUREAU — The Financial Stability Oversight Council has forbidden John Huff, the insurance regulator who represents the National Association of Insurance Commissioners on the FSOC, from briefing insurance regulators on FSOC activities, NAIC officials say.
Susan Voss, president of the NAIC, Kansas City, Mo., also complained Monday about the treatment the NAIC is getting from other FSOC members and from the staff of the FSOC.
While speaking at an insurance regulation conference in New York organized by the American Conference Institute, New York, Voss reportedly quipped that the FSOC has been putting the NAIC “at the children’s table.”
The Dodd-Frank Wall Street Reform and Consumer Protection Act created the FSOC to help the federal government keep tabs on events and trends that could hurt the U.S. financial system.
Section 113 of the Dodd-Frank Act gives the FSOC the authority to call for extra federal oversight to be imposed on nonbank financial companies that appear to pose a threat to U.S. financial stability.
By law, the chairman of the FSOC is the Treasury secretary.
Most of the other voting members are heads of federal financial services regulatory agencies, such as the Federal Reserve Board and the Federal Deposit Insurance Corp.
The council also is supposed to include a voting insurance member to be nominated by the president and confirmed by the Senate.
The head of the new Federal Insurance Office (FIO), another Treasury Department agency created by the Dodd-Frank Act, is supposed to be a non-voting FSOC member.
The FSOC is still missing the voting insurance member and the FIO director.