Brexit, ‘re-evaluation’ of SIFI designation on agenda for regulators’ oversight council

Brexit – the withdrawal of the United Kingdom from the European Union – as well as data collection on centrally cleared repurchase agreements are on the agenda for Tuesday’s public meeting of the Financial Stability Oversight Council (FSOC), the multi-federal financial regulators’ group designed to identify risks and respond to emerging threats to financial stability.

In its non-public “executive session,” the council will consider an “update” on the “annual reevaluation of the designation of a nonbank financial company” as a systemically important financial institution (SIFI). Reportedly, the company to be reevaluated is Prudential Financial Inc. The “de-designation” of the financial company as a SIFI would relieve Prudential from federal oversight.

A SIFI designation (created by the 2010 Dodd-Frank Wall Street Report and Consumer Protection Act) labels firms that threaten the overall U.S. economy if they got into financial trouble. Prudential was given the designation in 2013, placing it under Federal Reserve oversight.

Other actions on the executive session agenda include Brexit (again), the council’s 2018 annual report, and FSOC’s interpretive guidance on nonbank financial company designations. Other actions on the public agenda include “alternative reference rates.”

The Dodd-Frank law requires FSOC to meet at least quarterly, but the group can meet more frequently. Tuesday’s meeting would be the fifth meeting of the council in 2018.

The public meeting is scheduled to get underway at 2:30 p.m. ET and is planned to be webcast live via the Internet.

FSOC meeting notice for Oct. 16

FSOC webcast