News Release

ICI Welcomes Passage of Bipartisan FSOC Reform Bill

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Washington, DC; February 9, 2026—The Investment Company Institute released the following statement today after the US House of Representatives unanimously passed H.R. 3682, the Financial Stability Oversight Council (FSOC) Improvement Act of 2025. Representatives Bill Foster (IL-11) and Bill Huizenga (MI-04) sponsored the bill.

“Passage of the FSOC Improvement Act by the House is a win for investors. This bill enhances the position of the primary regulators, creates due process for affected firms, and leaves the blunt instrument of designation as a last resort. This is a bipartisan, balanced approach, and ICI thanks Representatives Foster and Huizenga for sponsoring the bill. We urge swift passage of this legislation by the Senate,” said ICI President and CEO Eric Pan. 

Background

  • ICI recently joined a letter from a coalition of business associations calling on the House of Representatives to pass the FSOC Improvement Act. 
  • The FSOC Improvement Act brings greater predictability and transparency to how FSOC considers designating nonbank financial companies as Systemically Important Financial Institutions (SIFIs). 
  • The bill ensures that, prior to voting on a proposed SIFI designation, FSOC determines whether the potential threat posed by a nonbank financial company could be mitigated through other means, including a different action by the company’s primary regulator or action by the company itself. 
  • The legislation passed the House Financial Services Committee in a 47-4 vote on September 16, 2025.
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    Financial Stability