In remarks to the Financial Stability Oversight Council (FSOC), U.S. Securities & Exchange Commission Chairman Paul S. Atkins welcomed the Council’s 2025 annual report and indicated he wants a “thoughtful review” of FSOC guidance on designating non-bank financial companies. Atkins said the annual report’s approach of separating formal recommendations from significant market developments produces a clearer picture of issues warranting monitoring. He argued that the prospect of “arbitrary and capricious” non-bank designation can impair firms’ ability to plan, deploy capital efficiently, and make strategic decisions, and he cautioned that Federal Reserve supervision centred on capital standards would not provide a meaningful regulatory framework for asset managers, insurance companies, and investment funds.
U.S. Securities & Exchange Commission 2025-12-11
U.S. Securities & Exchange Commission Chair signals support for reviewing FSOC non-bank designation guidance
U.S. Securities & Exchange Commission Chairman Paul S. Atkins urged a "thoughtful review" of FSOC guidance on designating non-bank financial companies. He criticized arbitrary designations for hindering firms' strategic planning and capital deployment. Atkins noted Federal Reserve supervision focused on capital standards is inadequate for asset managers, insurance companies, and investment funds.