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Compliance June 9, 2017
FSI, ICI Laud Passage of Financial CHOICE Act
On Thursday, the House of Representatives passed a bill that would undo much of the Dodd-Frank Act’s regulations and the fiduciary rule.
Reported by Lee Barney
The Investment Company Institute (ICI) and the Financial Services Institute (FSI) both issued statements applauding the U.S. House of Representatives’ passage on Thursday of the Financial CHOICE [Creating Hope and Opportunity for Investors, Consumers and Entrepreneurs] Act of 2017. The bill is considered to be the first real step toward Congressional repeal of Dodd-Frank regulations and the Department of Labor (DOL) fiduciary rule.
In the ICI statement, the institute’s president and CEO, Paul Schott Stevens, said, “[The vote] brings us one step closer to enhancing investment and economic growth by eliminating inappropriate and overly burdensome regulation affecting our capital markets. ICI strongly supports removing the power of the Financial Stability Oversight Council to designate non-bank entities as systemically important financial institutions [SIFIs]. Left unaddressed, this flawed process could designate registered funds as SIFIs and subject them to regulation by the Federal Reserve.”
Schott Stevens also said he was relieved to see that mutual funds would not be subjected to stress testing.
For its part, the FSI said the bill will allow investors to continue to have access to and choice among financial advisers. FSI President and CEO Dale Brown said, “The passage of the Financial CHOICE Act is a critical win for Main Street Americans who rely on affordable, objective advice to achieve their financial goals.”