Legislative Activity

Financial Services Lawmakers to Focus on FSOC, Hold Markup

This week, the House Financial Services Committee will hold an oversight hearing on the Financial Stability Oversight Council (FSOC). Notably, eight of the ten voting members will be present to testify. This hearing follows continued discussion about potential reforms to the agency, which many Republicans have suggested lacks transparency and accountability and needs to be reformed. The Committee will also hold a markup of eight bills, including legislation to protect consumers’ personal financial information by creating a national data security and data breach notification standard, as well as a resolution to continue its Task Force to Investigate Terrorism Financing.

Legislative Proposals Addressing the Fiduciary Rule Possible

In an effort to address concerns with the Department of Labor’s (DOL) Fiduciary Rule, a bipartisan group of lawmakers [Representatives Peter Roskam (R-IL), Richard Neal (R-MA), Phil Roe (R-TN), and John Larson (D-CT)] is soon expected to introduce a bill “to help strengthen the retirement security of working families and ensure retirement advisors protect their clients’ best interests.”  While it is not clear yet what the proposal will look like, given the pushback thus far on DOL’s version of the rule, a legislative proposal to address the fiduciary standard will likely be a welcome development. Such a proposal comes amid indications that lawmakers may seek to attach a provision to the omnibus spending bill that would block DOL from using funding for the Fiduciary Rule.

This Week’s Hearings:

• Tuesday, December 8: The House Financial Services Committee will hold a hearing titled “Oversight of the Financial Stability Oversight Council.”

• Tuesday, December 8: The House Financial Services Committee will hold a markup of various pieces of legislation.

Regulatory Activity

SEC to Hold Open Meeting on Use of Derivatives, Disclosures by Resource Extraction Issuers

On Friday, December 11, the Securities and Exchange Commission (SEC) will hold an open meeting to consider: (1) whether to propose a new rule and amendments to certain proposed forms related to the use of derivatives by registered investment companies and business development companies; and (2) whether to propose rules to require disclosure of certain payments made to governments by resource extraction issuers, as mandated by Section 1504 of the Dodd-Frank Wall Street Reform and Consumer Protection Act.