Becker pointed to the numerous federal agencies involved in the regulation of the U.S. financial services industry, adding that the FSOC should coordinate the activities of those agencies.
“This duty includes facilitating information-sharing and coordination among the member agencies of domestic financial services policy development, rule-making, examinations, reporting requirements and enforcement actions,” Becker said. “Through this role, the FSOC is effectively charged with ameliorating weaknesses within the regulatory structure, promoting a safer and more stable system.”
The FSOC was established under the 2010 Dodd-Frank Act and is staffed by Geithner, as well as heads of the Federal Deposit Insurance Corp., Federal Reserve Board, Consumer Financial Protection Bureau and Office of the Comptroller of the Currency.
Becker said that the numerous rules issued by federal agencies are accompanied by a significant regulatory burden.
“As we have approached each agency regarding the ever-increasing regulatory burden, they quickly respond that the rules being issued by other agencies are outside of their purview,” Becker said. “NAFCU believes the FSOC is well-positioned to rectify this lack of coordination.”
Additionally, Becker said that the FSOC should establish a policy that requires member agencies to utilize cost-benefit analysis before issuing new rules, adding that those agencies should repeat the analyses one year after implementation and every two years thereafter.