What is the Financial Stability Oversight Council?
It’s a committee responsible for monitoring the financial system in the US. The council reviews systematic risks affecting the entire financial industry, and can approve disciplinary action against financial institutions.
Where have you heard about the Financial Stability Oversight Council?
It was created by the Dodd-Frank Act of 2010, which was implemented in response to the 2008 financial crisis and brought about the most significant changes to financial regulation in the US since the reform that followed the Great Depression of 1929.
What you need to know about the Financial Stability Oversight Council.
Chaired by the Treasury Secretary, the council’s voting members include Treasury officials, members of the Federal Reserve and insurance experts.
Among other things, it’s tasked with promoting market discipline and minimising risks to the health of the nation’s economy. It oversees previously unregulated hedge funds and asset management activities, and can refer any ‘too-big-to-fail’ companies to the Federal Reserve. Its aim is to bring greater transparency to the financial services industry.
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