The Financial Stability Oversight Council, or FSOC, convened its fourth meeting today at the U.S. Department of the Treasury. At the meeting the FSOC approved a Notice of Proposed Rulemaking, or NPR, regarding designations of financial market utilities for heightened supervision and an NPR on the FSOC’s FOIA Regulations.
Section 804 of the Dodd-Frank Act gives the FSOC the authority to identify and designate as systemically important a financial market utility, or FMU, if the FSOC determines that its failure or disruption could create or increase the risk of significant liquidity or credit problems spreading among financial institutions or markets and thereby threaten the stability of the U.S. financial system. An FMU designated by the FSOC as systemically important would become subject to the heightened prudential and supervisory provisions of Title VIII of the Dodd-Frank Act.
Through this proposed rule, the FSOC is seeking to gather additional information to inform the rule by which it will designate FMUs as systemically important. This is the second step in the FSOC’s rulemaking process for designating systemically important FMUs. An advance notice of proposed rulemaking was discussed and approved for public comment at the FSOC’s November meeting. The NPR will have a 60-day public comment period, with FSOC action on the final rule expected later this year.
Section 112 of the Dodd-Frank Act provides that the Freedom of Information Act (FOIA), including the exceptions thereunder, shall apply to any data or information submitted to the FSOC. This NPR would implement the requirements of the FOIA as applied to the FSOC by setting forth procedures for requesting access to FSOC records.
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