Voya 2014 Annual Report Download - page 74

by Dodd-Frank. The FSOC’s potential recommendation of measures to address systemic financial risk could
affect our insurance operations as could a determination by the FSOC that we or our counterparties are
systemically significant.
The Dodd-Frank Act also established FIO within the United States Department of the Treasury (“Treasury
Department”). While not having a general supervisory or regulatory authority over the business of insurance, the
director of this office performs various functions with respect to insurance, including serving as a non-voting
member of the FSOC, making recommendations to the FSOC regarding insurers to be designated for more
stringent regulation as a non-bank financial entity supervised by the FRB and representing the U.S. in the
negotiation of international insurance agreements with foreign insurance regulators. The Dodd-Frank Act also
required the director of FIO to conduct a study on how to modernize and improve the system of insurance
regulation in the United States, including by increasing national uniformity through either federal involvement or
effective action by the states. The director issued that report in December 2013, recommending, in part, increased
federal involvement in certain areas of insurance regulation to improve uniformity, and setting out
recommendations in areas of near-term reform for the states, including capital and marketplace oversight. The
report also recommended, in part, that states develop a uniform and transparent solvency oversight regime for the
transfer of risk to reinsurance captives, and adopt a uniform capital requirement for reinsurance captives,
including a prohibition on transactions that do not constitute legitimate risk transfer. FIO reiterated its
recommendations for captives and other reforms in its 2014 annual report. FIO has an ongoing charge to monitor
all aspects of the insurance industry and will monitor state regulatory developments, including those called for in
its modernization report and present options for federal involvement if deemed necessary.
Federal legislation and administrative policies in several areas can significantly and adversely affect
insurance companies. These areas include federal health care regulation, pension regulation, financial services
regulation, federal tax laws relating to life insurance companies and their products and the USA PATRIOT Act
of 2001 (the “Patriot Act”) requiring, among other things, the establishment of anti-money laundering monitoring
programs.
In this regard, from time to time, federal measures are proposed which may significantly affect the insurance
business, including measures that would limit antitrust immunity, change the tax treatment of insurance products
relative to other financial products, simplify tax-advantaged or tax-exempt savings and retirement vehicles,
restructure the corporate income tax provisions, or modify or eliminate the estate tax as well as proposals related
to an optional federal charter for insurance companies. In addition, various forms of direct federal regulation of
insurance have been proposed in recent years.
Regulation of Investment and Retirement Products and Services
Our investment, asset management and retirement products and services are subject to federal and state tax,
securities, fiduciary (including the Employment Retirement Income Security Act (“ERISA”)), insurance and
other laws and regulations. The SEC, the Financial Industry Regulatory Authority (“FINRA”), the U.S.
Commodities Futures Trading Commission (“CFTC”), state securities commissions, state banking and insurance
departments and the Department of Labor (“DOL”) and the Treasury Department are the principal regulators that
regulate these products and services. The Dodd-Frank Act may also impact our investment, asset management,
retirement and securities operations. See “—Financial Reform Legislation and Initiatives—Dodd-Frank Wall
Street Reform and Consumer Protection Act” below.
Federal and state securities laws and regulations are primarily intended to protect investors in the securities
markets and generally grant regulatory agencies broad enforcement and rulemaking powers, including the power
to limit or restrict the conduct of business in the event of non-compliance with such laws and regulations. Federal
and state securities regulatory authorities and FINRA from time to time make inquiries and conduct examinations
regarding compliance by us and our subsidiaries with securities and other laws and regulations.
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