US regulators outline new rules to toughen financial oversight of non-banks
Top US financial regulators on Friday announced a series of proposals to strengthen the process by which investment managers, insurers and other nonbank financial groups are swept into a more stringent regulatory regime.
The new guidance from the US Financial Stability Oversight Council — a group of the country’s top financial regulators led by the Treasury department — details how it would go about singling out individual non-bank financial entities for supervision by the Federal Reserve, which would mean closer scrutiny.
“Some are based on a flawed view of how financial crises begin and the costs that they impose,” she said, noting that under current guidance, the process to finalise any designation could take up to six years.
This story originally appeared on: Financial Times - Author:Brooke Masters
