The U.S. Department of the Treasury recently released its third report on the evaluation of the Administration's Core Principles for financial regulation in an effort to establish recommendations for improvements with the current regulatory framework.
In the October 2017 report, Treasury Secretary Steven T. Mnuchin expressed how the regulatory framework for both the asset management and insurance industries can be significantly improved.
"We are recommending more efficient and effective regulation to give consumers access to the products they need while providing individuals with opportunities to save for retirement," Mnuchin said.
According to the release, this report is in response to Executive Order 13772, issued by the President on February 3, 2017. The order calls on Treasury to, “identify laws and regulations that are inconsistent with the Core Principles for financial regulation set forth in the Executive Order.”
The report notes that nine of the top 10 global asset managers are headquartered in the U.S., making America’s insurance market the largest in the world— representing 29 percent of the global market. Therefore, as the global leaders, it is significant that the U.S. promotes “vibrant capital markets and diverse investment opportunities, and ensures Americans can safeguard themselves, their property, and their businesses against unexpected events.”
In addition, it is important improvements are ensured. In the report, Treasury identifies numerous ways to improve the regulatory framework for asset managers and insurance companies.
Some of those recommendations include; supporting activities-based evaluations of systemic risk in the asset management and insurance industries; improving coordination between the Federal Insurance Office and state insurance regulators; and continuing engagement in international forums to promote the U.S. asset management and insurance industries and the U.S. regulatory framework, according to the Treasury.
Treasury's evaluation focuses on four key areas. These areas include the proper evaluation of systemic risk, ensuring effective regulation and government processes, rationalizing international engagement, and promoting economic growth, and informed choices.
To view the full report, click here.
To view the full fact sheet, click here.