Treasury’s third financial regulation report

Last week, the Treasury Department released its third report on financial regulation in response to President Trump’s February Executive Order (EO). The third Treasury Report (Report) analyzes requirements that apply to the asset management and insurance industries, and makes recommendations to align the requirements with the Administration’s “Core Principles.” The Report’s recommendations closely aligned to industry pain points while largely leaving statutory requirements of the Dodd-Frank Act untouched. As a result, a majority of its recommendations can be directly enacted by the relevant regulatory agencies, primarily the Securities and Exchange Commission (SEC) and the various state and federal insurance regulators. The following 10 points outline highlights from Treasury’s recommendations:

  1. Look at activity not size. 
  2. Target principles-based liquidity risk management.  
  3. Reconsider rule on use of derivatives. 
  4. Repeal stress testing mandate. 
  5. Ease ETF approval process. 
  6. Business continuity plan rule not needed. 
  7. Delay DOL fiduciary rule and involve the SEC. 
  8. Minimize overlap between the SEC and CFTC. 
  9. Coordinated oversight for insurance. 
  10. What’s next? 

First take

A publication of PwC's financial services regulatory practice

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Julien Courbe
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