By Lisa M. Goolik, J.D.
In case you missed it, the Financial Stability Oversight Council voted this week not to rescind MetLife’s designation as a non-bank systemically important financial institution (SIFI). The SIFI designation subjects the insurance company to the enhanced prudential standards and supervision by the Federal Reserve Board.
Although the March 2, 2016, meeting readout provides few details of the Council’s discussion, the FSOC noted that, as a general matter, if a company has addressed the key factors in the Council’s basis for its designation, the Council will rescind the designation. MetLife was previously notified of the Council's review and invited to submit information regarding any change that the company deemed relevant to its SIFI designation.
The FSOC provided MetLife and its lead state insurance regulator with a notice explaining the primary bases for the Council’s decision. The notice addresses also the material factors raised by the company in its submission to the Council contesting the determination during the annual reevaluation.
MetLife is currently challenging the designation in the U.S. District Court for the District of Columbia.
For more information about the FSOC and MetLife's SIFI designation, subscribe to the Banking and Finance Law Daily.
