At the hearing, American Council of Life Insurers (ACLI) President and CEO Dirk Kempthorne made similar complaints against FSB and FSOC.
Both the life insurance and mutual fund industry trade group leaders said G-SIFI and SIFI designations should be based on a the risks inherent in a financial company’s activities rather than its size.
Senate Banking Committee Chair Richard Shelby (R-Ala.) and Sen. Elizabeth Warren (D-Mass.) said FSB should allow mutual funds and other companies labeled as G-SIFIs to have the designation removed if they change their risky practices—a practice followed by the FSOC.