Voya 2013 Annual Report Download - page 66

generally excluded from the CFPB’s jurisdiction; however, certain types of employee benefit plans and
retirement products may become subject to the CFPB’s jurisdiction upon a joint written request by the
DOL and the Treasury Department. We believe we offer a very limited number of products subject to
regulation by the CFPB, although it is possible that the CFPB will assert jurisdiction more expansively
than anticipated.
• The Dodd-Frank Act includes various securities law reforms that may affect our business practices and
the liabilities and/or exposures associated therewith. See “—Broker-Dealers and Investment Advisers”
above.
Until final regulations are promulgated pursuant to the Dodd-Frank Act, the full impact of the Dodd-Frank
Act on our businesses, products, results of operation and financial condition will remain unclear.
International and National Regulatory Initiatives that May Affect Us as a Consequence of our Affiliation
with ING Group
The causes of the recent financial crisis are being actively reviewed by lawmakers around the world, who are
exploring steps to avoid similar problems in the future. In many respects, this work is being led by the Financial
Stability Board (“FSB”), which consists of representatives of national financial authorities of the Group of Twenty
(“G20”) nations. The FSB, along with the G20, have issued a series of papers and recommendations intended to
produce significant changes in how financial companies, particularly companies that are members of large and
complex financial groups, should be regulated. These proposals address such issues as financial group supervision,
capital and solvency standards, systemic risk, corporate governance including executive compensation, and a host of
related issues associated with responses to the financial crisis. The FSB, for example, has proposed to designate
certain companies as systemically significant, similar to the approach the FSOC may take in connection with
systemically significant banks and non-bank financial companies under the Dodd-Frank Act. Legislators and
regulatory authorities in a number of jurisdictions in which ING Group operates have already begun introducing
legislative and regulatory changes consistent with G20 and FSB recommendations as well as their own initiatives in
a number of policy areas. On January 19, 2011, the EC presented a draft directive to amend the Solvency II
Directive, referred to as the “Omnibus II Directive”. The Solvency II Directive and the Omnibus II Directive will
effect a full revision of the European insurance industry’s solvency framework and prudential regime (in particular,
minimum capital and solvency requirements, governance requirements, risk management and public reporting
standards) and will impose, among other things, group-level supervision mechanisms. It is not certain when the
Solvency II Directive rules will be finalized, nor what those final rules will contain. In addition, despite the
announcement that the Solvency II Directive will become effective on January 1, 2016, there remains uncertainty as
to when the rules will become effective given previous changes to the proposed effectiveness date. Accordingly, the
future effect of the Solvency II Directive on our business, solvency margins and capital requirements is uncertain.
Regulation by Dutch Authorities
The Dutch Central Bank (De Nederlandsche Bank, or “DNB”) is the supervisor of the Company’s current
majority shareholder, ING Group. DNB supervises and assesses the financial situation of ING Group as a whole
and thus includes the operations of the Company and its subsidiaries. The ongoing divestment of the Company
by ING Group continues to be subject to the oversight of the DNB. This supervision of compliance with
regulatory requirements includes the topics of capital adequacy, risk concentration and intra group contracts and
positions as well as rules regarding the operations of ING Group. Furthermore DNB also plans and coordinates
supervisory activities with the relevant supervisory authorities of ING Group subsidiaries. On November 4, 2013,
a regulation concerning the establishment of a Single Supervisory Mechanism (“SSM”) became effective. As a
result of the effectiveness of the SSM, the European Central Bank (“ECB”) will assume responsibility for part of
the prudential supervision of ING Bank N.V. (“ING Bank”) and ING Group as of November 4, 2014. Under the
SSM regulations, the ECB has a mandate to participate in supplementary supervision of a financial conglomerate
in relation to the banks included in a conglomerate such as ING Group, and to assume the tasks of a coordinator
where the ECB is appointed as the coordinator for a financial conglomerate. At this point in time, it is uncertain
if and how the new supervisory structure or ECB mandate may impact ING Group or ING U.S.
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