Fed formally applies to IAIS for membership
November 5, 2013 by Elizabeth Festa
As anticipated, the Federal Reserve Board formally applied to the International Association of Insurance Supervisors (IAIS) Oct. 25 in an application that lays out the full scope of its powers and breadth as a central bank.
Although the Federal Reserve has had oversight of various insurance companies that owned banks and thrifts, and as such were organized as these holding companies, the Fed’s involvement in the IAIS dovetails more neatly with the new international policies underway for big, international insurers as well as recent, domestic developments under the Dodd-Frank Act implementation.
Specifically, AIG and Prudential Financial were recently designated as systemically important financial institutions (SIFIs) by the Financial Stability Oversight Council (FSOC), of which the Fed is a member.
