On 26 September 2011, the US Senate confirmed S. Roy Woodall as a voting member of the Financial Stability Oversight Council (the “FSOC”). Mr. Woodall was nominated for the position by President Obama in June 2011. Mr. Woodall is the third insurance representative on the FSOC. Missouri Insurance Director John Huff and Federal Insurance Office Director Michael McRaith will also serve on the FSOC. Mr. Woodall is the only voting insurance representative. His confirmation is significant, as the FSOC has the authority to designate nonbank financial institutions, including insurance companies, as “systemically significant” under the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Act”). Such a designation would lead to heightened prudential standards being imposed on a company under the Act. Prior to Mr. Woodall’s confirmation, the FSOC had been conducting meetings and considering rules for regulating nonbank financial institutions without the presence of a voting insurance member to represent the interests of the insurance industry.
For more information on Mr. Woodall and the Financial Stability Oversight Council, please see our article from the July 2011 Mayer Brown Global Corporate Insurance & Regulatory Bulletin, President Obama Nominates Roy Woodall to Serve as a Voting Member of the Financial Stability Oversight Council.