CISA is a financial services reform bill that passed the House last month, but its prospects for becoming law in the Senate are less certain.
The bill would create a financial advisory commission and a public service commission to review the industry’s compliance with the law and provide guidance to regulators and investors about what to do about the fraud, bad debt and other risks associated with the financial system.
The Financial Industry Regulatory Authority, which oversees CISA, said it expects the commission to provide guidance on “the appropriate approach to monitoring and detecting suspicious activity in financial markets and to developing best practices for the industry.”
It also said it will have “advisory, regulatory and enforcement expertise to promote compliance and prevent fraud, which will be focused on the following areas:• Ensuring that the financial institutions regulated by CISA are providing appropriate protection to their customers and their accounts;• Ensulating that all customers have adequate funds available to meet their obligations and to meet any risk;• Encouraging the establishment of financial institutions with the appropriate degree of transparency and oversight; and• Establishing a national financial information reporting system, as required by the Federal Deposit Insurance Corporation.
The agency said the new commission will be composed of representatives from financial institutions, regulators, and investors.”
We look forward to working with Senate colleagues to ensure CISA advances its goal of providing meaningful and timely financial services oversight and enforcement.””
The bill reflects the strong support of the CISA Advisory Committee, which includes a wide range of industry stakeholders.
We look forward to working with Senate colleagues to ensure CISA advances its goal of providing meaningful and timely financial services oversight and enforcement.”
The Senate is expected to take up the bill this week, with its own version expected to be voted on later this week.
There is also growing support among Senate Democrats to allow regulators to set up a new financial advisory board, as well as the creation of a new regulatory agency, the Financial Stability Oversight Council, which would oversee and regulate the financial industry.
This article was updated at 11:55 a.m. to include a statement from CISA.