News Release
ICI Applauds Introduction of House Bill to Reform FSOC
Washington, DC, June 3, 2025—Today, Investment Company Institute (ICI) President and CEO Eric J. Pan released the following statement after the Financial Stability Oversight Council Improvement Act was introduced by Representatives Bill Foster (D-IL) and Bill Huizenga (R-MI). The bipartisan legislation would reform the Financial Stability Oversight Council’s (FSOC) ability to designate nonbank financial companies as systemically important financial institutions (SIFI).
“ICI applauds Representatives Foster and Huizenga for their leadership to enhance FSOC’s accountability and transparency. The Financial Stability Oversight Council Improvement Act will help American businesses succeed free from the fear of dramatic governmental overreach. SIFI designation for fund managers would have broad-reaching negative consequences and should only ever be used where it is supported by robust data and cost-benefit analysis. ICI encourages the House to move swiftly to pass this legislation to bring more transparency to government and give greater certainty to registered funds, their managers, and the more than 120 million investors they serve. We look forward to working with Congress on this important legislation.”
Background:
The Financial Stability Oversight Council Improvement Act will ensure that, prior to voting on a proposed SIFI designation, the FSOC determines whether the potential threat posed by a nonbank financial intermediary could be mitigated through other means, including a different action by the company’s primary regulator or action by the company itself.