WASHINGTON (11/28/11)--The Government Accountability Office (GAO) in a recent report recommended that the Financial Stability Oversight Council (FSOC) work with its partner regulators, including the National Credit Union Administration (NCUA), to better coordinate Dodd-Frank Act-related regulatory actions.
The council is comprised of 10 voting members--nine federal financial regulators, including the NCUA, and one independent member--and five nonvoting members.
Specifically, the GAO said the FSOC should establish policies to clarify a number of issues, including when coordination should occur, the process that will be used to solicit and address comments, and what role FSOC should play in facilitating coordination.
These recommendations were spawned by the GAO's examination of Dodd-Frank Act rules that were effective as of July 21. The GAO in its report examined analyses, including cost-benefit analyses, that regulators performed to assess the potential impact of the final rules, and how regulators worked to avoid duplicative implementation of these rules or other conflicts. The GAO also assessed the overall impact of the final Dodd-Frank regulations.
A total of 10 rules were examined by the GAO. Two final rules issued by NCUA, which involved the permanent increase in standard maximum share insurance amount and other changes to the share insurance rule and appendix, were not covered in the review.
The GAO recommended that the FSOC members should also work with the Treasury's Office of Financial Research to identify and collect the data necessary to assess the impact of Dodd-Frank regulations on, among other things, the stability, efficiency, and competitiveness of the U.S. financial markets.
Credit Union National Association (CUNA) Assistant General Counsel Luke Martone said the GAO recommendations may have some limited impact on credit unions, due to the NCUA's FSOC membership. However, he added, most of the NCUA's regulations will not need to be harmonized.
Although CUNA wants the NCUA to be as efficient as possible, and to streamline many of its regulations, the additional red tape that could occur from more harmonization with other agencies would not be useful, Martone added.
For the full GAO report, use the resource link.