AIG 2014 Annual Report Download - page 40

ITEM 1 / BUSINESS
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The following table provides a general overview of our primary regulators and related bodies and a brief description
of their oversight with respect to us and our subsidiaries, including key regulations or initiatives that we are currently,
or may in the future be, subject to. Such regulations and initiatives, both in the United States and abroad, are
discussed in more detail following the table.
U.S. Federal Regulation
Board of Governors of the Federal Reserve System (FRB): Oversees and regulates financial institutions, including nonbank
systemically important financial institutions (nonbank SIFIs). We are currently subject to the FRB’s examination, supervision
and enforcement authority, and certain reporting requirements, as a nonbank SIFI.
Office of the Comptroller of the Currency (OCC): Charters, regulates and supervises all national banks and federal savings
associations. The OCC supervises and regulates AIG Federal Savings Bank, our trust-only federal thrift subsidiary.
Securities and Exchange Commission (SEC): Oversees and regulates the U.S. securities and security-based swap
markets, U.S. mutual funds, U.S. broker-dealers and U.S. investment advisors. Principal regulator of the mutual funds offered
by our broker-dealer subsidiaries. The SEC is in the process of implementing rules and regulations governing reporting,
execution and margin requirements for security-based swaps entered into within the U.S or by U.S. persons. Our security-
based swap activities conducted by GCM are likely to be subject to certain of these rules and regulations.
Commodities Futures Trading Commission (CFTC): Oversees and regulates the U.S. swap, commodities and futures
markets. The CFTC has begun implementing and is continuing to implement rules and regulations governing reporting,
execution, margin and other requirements for swaps entered into within the U.S. or involving U.S. persons. Our swap activities
conducted by GCM are subject to certain of these rules and regulations.
Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank): Dodd-Frank has effected comprehensive
changes to financial services regulation and subjects us, or may subject us, as applicable, to additional federal regulation,
including:
• enhanced prudential standards for nonbank SIFIs (including minimum leverage and risk-based capital requirements, capital
planning, stress tests, liquidity requirements, corporate governance requirements, contingent capital requirements,
counterparty credit limits, an early remediation regime process and recovery and resolution planning);
• limitations on proprietary trading or covered fund activities, if the FRB decides to impose certain elements of Section 619 of
Dodd-Frank (referred to as the “Volcker Rule”) on nonbank SIFIs;
• financial sector concentration limits; and
• increased regulation and restrictions on derivatives markets and transactions.
U.S. State Regulation
State Insurance Regulators: Our insurance subsidiaries are subject to regulation and supervision by the states and other
jurisdictions in which they do business. Regulation is generally derived from statutes that delegate supervisory and regulatory
powers to a state insurance regulator, and primarily relates to the insurer’s financial condition, corporate conduct and market
conduct activities.
NAIC Standards: The National Association of Insurance Commissioners (NAIC) is a standard-setting and regulatory support
organization created and governed by the chief insurance regulators from the 50 states, the District of Columbia and five U.S.
territories. The NAIC itself is not a regulator, but through the NAIC, state insurance regulators establish standards and best
practices, conduct peer review and coordinate regulatory oversight.
Foreign Regulation
Financial Stability Board (FSB): Consists of representatives of national financial authorities of the G20 nations. The FSB