WASHINGTON, D.C. (April 14, 2011) — Adequate representation of insurance regulators on the Financial Stability Oversight Council (FSOC) is key to financial stability, Missouri Insurance Director John Huff told Congress today. Speaking on behalf of the National Association of Insurance Commissioners (NAIC), Huff testified before the House Committee on Financial Services’ Subcommittee on Oversight and Investigations.
“Our regulatory system requires regulators to work collaboratively and share information with one another in confidential settings. Yet to date, I have been restricted from consulting with my fellow insurance regulators on matters before FSOC,” testified Huff. “Quite simply, FSOC should want – and the US taxpayers should demand – the resources and expertise that their regulators can provide to the FSOC’s work in protecting the US financial system.”
Huff was asked to testify before the Subcommittee along with other financial regulators on the Council. Also appearing before the Subcommittee were: Gary Gensler, Chairman, Commodity Futures Trading Commission; Jeffrey A. Goldstein, Under Secretary for Domestic Finance, Department of the Treasury; J. Nellie Liang, Director, Office of Financial Stability Policy and Research, Federal Reserve; Robert W. Cook, Director, Division of Trading and Markets, Securities Exchange Commission; Arthur J. Murton, Director, Division of Insurance and Research, Federal Deposit Insurance Corporation; and Tim Long, Chief National Bank Examiner and Senior Deputy Comptroller for Regulatory Policy, Office of the Comptroller of the Currency.
“The Council’s aggressive timetable and ambitious scope of work can be better achieved through full engagement of state regulators,” said Susan E. Voss, NAIC President and Iowa Insurance Commissioner. “Limiting Director Huff’s ability to collaborate and consult with fellow state regulators would be a disservice to the Council and its important role.”
Click here for the full text of Director Huff’s written testimony.
Click here to view a webcast of the hearing and read additional testimony.
About the NAIC
Formed in 1871, the National Association of Insurance Commissioners (NAIC) is a voluntary organization of the chief insurance regulatory officials of the 50 states, the District of Columbia and five U.S. territories. The NAIC has three offices: Executive Office, Washington, D.C.; Central Office, Kansas City, Mo.; and Securities Valuation Office, New York City. The NAIC serves the needs of consumers and the industry, with an overriding objective of supporting state insurance regulators as they protect consumers and maintain the financial stability of the insurance marketplace. For more information, visit www.naic.org.