Lawmakers are applauding the passage Tuesday of H.R. 3110, the Financial Stability Oversight Council Insurance Member Continuity Act, bipartisan legislation introduced by Rep. Maxine Waters, D-Calif., ranking member of the House Financial Services Committee, and Rep. Randy Hultgren, R-Ill., which would extend the term of FSOC independent member with insurance expertise.

“I applaud my colleagues in the Senate for passing this commonsense legislation that would allow the Financial Stability Oversight Council to continue to have a member with insurance expertise, and ensure that the FSOC has a complete roster of voting members,” said Waters in a Wednesday statement.

FSOC “plays a crucial role in keeping our financial system safe, and this technical correction is an example of bipartisan cooperation to improve the Dodd–Frank Wall Street Reform and Consumer Protection Act … and the functioning of our regulatory system.”

Waters added that it is “unclear” under current law if the independent insurance member, who is nominated by the president and confirmed by the Senate to serve six years, can continue serving in this position as an acting official once the member’s term expires.

H.R. 3110, which passed the House and now goes to the president’s desk for approval, allows the independent insurance member to serve for an additional 18 months or until the confirmation of a new individual.

Current FSOC independent insurance member Roy Woodall’s term expires on Sept. 30, and his successor has not yet been nominated.

H.R. 3110 allows the FSOC independent member with insurance expertise “to remain in the position past his or her term for the earlier of (1) 18 months or (2) when a successor is confirmed,” which is similar to the term of a Commissioner at the Securities and Exchange Commission, Waters said.

Senate Banking Committee Chairman Mike Crapo, R-Idaho, and Ranking Member Sherrod Brown, D-Ohio, lauded the passage of H.R. 3110.

“This simple fix will allow the FSOC to continue to benefit from the important insight and contributions of the independent member with insurance expertise if their replacement has not been confirmed,” Crapo said in a statement. “I thank Senator Brown for working with me to ensure its passage.”

“This bill is another example of how we can find broad, bipartisan consensus on fixes to Wall Street Reform,” added Sen. Brown. 

— Check out House Panel Set to Examine FINRA on ThinkAdvisor.