Two federal financial regulatory agencies have each independently announced an unusual open-door process that will apply to the rulemaking needed to implement a sweeping financial regulatory overhaul.
The Federal Deposit Insurance Corporation announced yesterday that the new process would allow the public to comment even before the agency drafts and proposes its regulatory reform rules and amendments in connection with the Dodd-Frank Wall Street Reform and Consumer Protection Act.
The FDIC also will publicly disclose meetings between senior FDIC officials and private sector individuals. The voluntary public disclosure policy will apply to meetings discussing how the FDIC should interpret or implement provisions of the Dodd-Frank Act that are subject to independent or joint rulemaking by the FDIC, according to the agency.
"Now that Congress has acted and the President has signed the bill into law, it is in the regulators' ballpark to implement the new reforms as quickly and openly as possible,” said FDIC Chair Sheila Bair in a statement. “I think transparency is a significant issue for each step along the way. We owe it to the public to have an open door policy so that people can see for themselves how financial services reform is going to be implemented."
Securities and Exchange Commission Chair Mary Shapiro was first out of the gate with a similar new procedure announced on July 27. The SEC website already shows public comments on particular parts of the new law.
Like Bair, Shapiro also promised greater public disclosure of meetings with SEC staff. Both agencies’ new procedures go further than required by the Administrative Procedure Act that governs federal rulemakings. Under the act, agencies generally must publish a notice of rulemaking and a draft rule with a public comment period.
Under the FDIC procedure, the agency will hold a series of roundtable discussions with outside parties on implementation issues. These will be designed to provide balanced public input throughout the rulemaking process and will be available for public viewing via a webcast. In addition, any interested party can request a meeting with FDIC officials or staff by submitting a form that will be available via the FDIC's webpage.
The agency also will release, on a bi-weekly basis, the names and affiliations of private sector individuals who meet with senior FDIC officials to discuss implementing the new law through independent or joint rulemakings. The FDIC will release the subject matter of those meetings. The agency will continue to webcast all open board meetings, including those regarding regulatory reform.
The public can submit views via email on how the FDIC should implement the new law. The comments will become part of the record and will be posted on the FDIC website. The public will also be able to sign up for a subscription service for receiving notices on major developments. The FDIC has also prepared bill summaries and added a fact sheet that will be regularly updated to reflect policy decisions during the implementation process. This can all be accessed here.
The SEC is providing the public with a series of e-mail links on its website here. These mailboxes are organized by topic and are listed starting with rules that have the shortest time frame for implementation. The public can provide preliminary comments on topics including OTC derivatives, hedge funds, corporate disclosure, credit rating agencies, executive compensation and other areas in which the SEC will be engaged in rulemaking and studies over the next 18 months. Submitted comments will also be posted on the website for full transparency.
Shapiro said commission staff will try to meet with any interested parties seeking a meeting. When the number of requests exceeds availability, the staff will seek out parties with varying viewpoints. The staff also will reach out as necessary to solicit views from affected stakeholders who do not appear to be fully represented by the developing public record on a particular issue.
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