FSR, SIFMA Urge Regulators to Eliminate Outdated, Unduly Burdensome Regulations
Joint letter details cost and resource-saving changes needed on Fed’s 10-year review
Washington, DC— The Financial Services Roundtable (FSR) and the Securities Industry and Financial Markets Association (SIFMA) submitted a comment letter to the federal banking regulators today requesting changes to a host of banking regulations that are outdated, unnecessary or unduly burdensome for financial services companies.
The letter is in response to the Economic Growth and Regulatory Paperwork Reduction Act (EGRPRA) requirement that banking regulations be reviewed by the agencies at least once every 10 years to consider how to reduce regulatory burden on insured depository institutions. Today’s comment letter is in response to the first of four groups of regulations that regulators intend to review.
“The safety and security of the nation’s economy and the financial services industry is paramount, but there are numerous improvements the federal government should consider that can save time and money while improving productivity, innovation and economic growth,” said FSR President & CEO Tim Pawlenty.
“SIFMA is pleased to join FSR in recommending improvements to streamline regulations and reduce both the burden on the financial services industry as well as the regulatory agencies to better serve the mission of financial stability. It is important that regulators conduct regular reviews to increase the clarity, uniformity and cost-effectiveness of their regulations, while decreasing uncertainty, duplication and inconsistencies across their definitions and rulemakings. We look forward to continuing in this constructive dialogue with the regulators to ensure proper effectiveness of these important regulations,” said SIFMA President & CEO Kenneth E. Bentsen, Jr.
The letter makes a number of recommendations, including that EGRPRA reviews should be expanded to include regulations within the jurisdiction of the Consumer Financial Protection Bureau, which is also a member of the FFIEC. Most of the regulations within the jurisdiction of the CFPB have been in effect for years and were subject to the 2004 EGRPRA review. After its creation, the CFPB merely republished the majority of these regulations without any review or update. To exclude this large body of federal regulations from the scope of this review deprives the members of FSR, SIFMA, and other stakeholders an opportunity to suggest improvements to key regulations.
The joint trades also urge the FFIEC to include within the review recently-issued regulations and regulations that are still in the process of implementation. The letter notes several examples where members of FSR and SIFMA are experiencing unanticipated burdens connected with recently issued regulations.
The Financial Services Roundtable represents the largest integrated financial services companies providing banking, insurance, payment and investment products and services to the American consumer. Member companies participate through the Chief Executive Officer and other senior executives nominated by the CEO. FSR member companies provide fuel for America’s economic engine, accounting for $92.7 trillion in managed assets, $1.2 trillion in revenue, and 2.3 million jobs. Learn more at FSRoundtable.org.