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Treasury's FSOC Operating "Behind Closed Doors," Excluding State Regulators

A new federal entity drafting rules for financial markets is operating "behind closed doors" and should emulate state officials by making its discussions open to...
March 8, 2011

A new federal entity drafting rules for financial markets is operating "behind closed doors" and should emulate state officials by making its discussions open to public scrutiny. That's the assessment of National Conference of Insurance Legislators (NCOIL) President George Keiser. Keiser, a North Dakota representative, said at the opening day of NCOIL's spring national meeting that while there are legitimate confidentiality concerns with the Financial Stability Oversight Council (FSOC), state regulators work with confidential data on a daily basis.

"Behind closed doors, you run the risk of not determining proper input for that process," Keiser said. National Association of Insurance Commissioners (NAIC) President and Iowa Insurance Commissioner Susan Voss agreed, pointing out that the only insurance representative on the FSOC is Missouri Director of Insurance John Huff, a nonvoting member selected by the NAIC. She said the Treasury Department has taken the position that Huff only represents Missouri and has blocked him from sharing essential and confidential information with other regulators and all but three NAIC employees. "I don't believe we have transparency," Voss said. NAIC leaders have accused federal officials of deliberately shutting out the voices of state insurance regulators.