The Financial Stability Oversight Council will vote Tuesday on the factors it will use in determining whether an insurer is “systemically significant,” climaxing a regulatory process that has been underway since the fall of 2010.
A proposal was first published for comment in January 2011, but re-proposed last Sept. 11th under intense pressure from industry as well as members of Congress.
Industry officials were guarded in their comments, and the ACLI said it would not comment until it saw the final document.
However, one industry official acknowledged that the industry was caught “off guard” by the announcement of Tuesday’s meeting, scheduled for 2 p.m.
The industry contended that the initial proposal did not take into account the differences between banks – the primary concern of the FSOC – and non-bank financial providers such as insurers.
Moreover, the industry and its congressional supporters wanted the regulation to be more specific in disclosing the qualitative and quantitative standards that will be used in determining whether an institution is systemically significant.
Analysts are also weighing in.