Rothfus Introduces Bipartisan Regulatory Reform Legislation
WASHINGTON – Congressman Keith Rothfus (PA-12) and Congresswoman Joyce Beatty (OH-3) introduced the State Insurance Regulatory Preservation Act (H.R. 5059). This legislation ensures that insurance savings and loan holding companies (ISLHCs) that meet applicable state and federal capital standards are regulated by the states.
“This common sense regulatory reform bill will ensure that federal and state regulators complement each other’s efforts,” said Congressman Rothfus. “The current system of duplicative supervision is inefficient and creates added and unnecessary costs that hinder growth and hurt consumers. I am thankful that my Democratic colleague, Congresswoman Joyce Beatty, has joined me in this important effort.”
State regulators have a successful history of supervising the business of insurance and the Dodd-Frank Act reaffirmed this tradition. However, Dodd-Frank brought ISLHCs, which contain thrifts, under the supervision of the Federal Reserve. This departure from the historical norm has created regulatory inefficiency and unnecessary duplication of effort. H.R. 5059 would ensure that state regulators are responsible for day-to-day supervision. It also preserves the ability of the Federal Reserve to take a more active role, if ISLHCs fail to adhere to the requirements of the bill. Thrifts would continue to be regulated by the Office of the Comptroller of the Currency (OCC).