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Senate Banking Chair Supports FINRA360, Hopes for Further Fiduciary Rule Delay

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Senate Banking Committee Chairman Mike Crapo, R-Idaho, said Wednesday that while he doesn’t know “what the administration is going to do” regarding the Department of Labor’s fiduciary rule, “I personally believe that the [Securities and Exchange Commission] is the appropriate regulator to deal with the issue, and if we can’t get some resolution soon, it’s my hope that we can further delay the process so that we can allow for that.”

Crapo, who made his comments regarding Labor’s fiduciary rule to reporters after his remarks at the Financial Industry Regulatory Authority’s annual conference in Washington, told conference attendees that he approved of the FINRA360 initiative.  

“The markets and FINRA’s member firms have changed significantly since FINRA was formed 10 years ago,” Crapo said.

“While FINRA has made considerable, innovative changes in a number of areas, it is appropriate that it conduct a review to see if there are other areas that require improvement.”

FINRA360, Crapo continued, “will create a framework for the organization to convert feedback and input into action – action that will result in continuous progress.” He encouraged audience members to be “highly engaged in this effort.”

Crapo noted that he also encouraged SEC Chairman Jay Clayton during his confirmation hearing to perform a retrospective review of the SEC’s regulations “to ensure that they are working as intended and are still appropriate.”

Crapo also said that he’s “optimistic that we can enact meaningful legislative and regulatory changes that can help to fuel economic growth – a key priority for Congress.”

“Many of these changes will occur because of presidential and executive agency actions to reduce the complexity and burden of federal regulations and by nominating and confirming individuals who will promote economic growth,” he said.

The three open Federal Reserve governor spots, Crapo said, “particularly the vice chair for Supervision, will have a major impact on our economy,” adding that he has “encouraged the administration to refer nominees to the Committee as soon as appropriately possible so that the regulatory agencies can get new leadership and guidance.”

Other changes “will come from moving legislation through the House and Senate, and the president signing bills into law,” he continued, noting House Financial Services Committee Chairman Jeb Hensarling’s Financial Choice Act.

“My goal this Congress is to work in a bipartisan manner with members of the Banking Committee, the administration, Chairman Hensarling and the regulators to strike a balance between smart, thoughtful regulation, and promoting economic growth,” Crapo said.

— Check out FINRA Seeks Comments on Outside Business Activities, Private Securities on ThinkAdvisor.


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