Voya 2014 Annual Report Download - page 77

employee benefit plan or a plan’s participants. In early July 2013, the DOL announced that it would re-propose
these regulations, under the revised general topic of conflicts of interest under ERISA pertaining to investment
advice. The new proposed regulation is expected to be transmitted by the DOL to the Office of Management and
Budget for review during the first quarter of 2015 and published for public comment during the second quarter of
2015. We cannot predict with any certainty what will be contained in the re -proposed regulations or when the
DOL would propose the new rule become final or effective, but such regulations could alter the way our products
and services are marketed and sold to ERISA plans and their plan participants and to purchasers of individual
retirement accounts and individual retirement annuities. The SEC also has indicated that it may propose rules
creating a uniform standard of conduct applicable to broker-dealers and investment advisers, which, if adopted
may affect the distribution of our products. Should the SEC rules, if adopted, not align with any reissued and
finalized DOL regulations related to conflicts of interest in the provision of investment advice, the distribution of
our products could be further complicated.
The DOL has also issued a number of regulations recently, and may issue similar additional regulations, that
increase the level of disclosure that must be provided to plan sponsors and participants. These ERISA disclosure
requirements will likely increase the regulatory and compliance burden on us, resulting in increased costs.
Trust Activities Regulation
Voya Institutional Trust Company (“VITC”), our wholly owned subsidiary, is a newly formed trust bank
chartered by the Connecticut Department of Banking and is subject to regulation, supervision and examination by
the Connecticut Department of Banking. VITC is not permitted to, and does not, accept deposits (other than
incidental to its trust and custodial activities). VITC’s activities are primarily to serve as trustee or custodian for
retirement plans or IRAs.
Voya Investment Trust Co., our wholly owned subsidiary, is a limited purpose trust company chartered with
the Connecticut Department of Banking. Voya Investment Trust Co. is not permitted to, and does not, accept
deposits (other than incidental to its trust activities). Voya Investment Trust Co.’s activities are primarily to serve
as trustee for and manage various collective and common trust funds. Voya Investment Trust Co. is subject to
regulation, supervision and examination by the Connecticut Banking Commissioner and is subject to state
fiduciary duty laws. In addition, the collective trust funds managed by Voya Investment Trust Co. are generally
subject to ERISA.
Financial Reform Legislation and Initiatives
Dodd-Frank Wall Street Reform and Consumer Protection Act
On July 21, 2010, President Obama signed into law the Dodd-Frank Act, which effects comprehensive
changes to the regulation of financial services in the United States. The Dodd-Frank Act directs existing and
newly-created government agencies and bodies to conduct certain studies and promulgate a multitude of
regulations implementing the law, a process that is underway and is expected to continue over the next few years.
While some studies have already been completed and the rule-making process is well underway, there continues
to be significant uncertainty regarding the results of ongoing studies and the ultimate requirements of those
regulations that have not yet been adopted. We cannot predict with certainty how the Dodd-Frank Act and such
regulations will affect the financial markets generally, or impact our business, ratings, results of operations, cash
flows or financial condition.
The Dodd-Frank Act created a new agency, the FSOC, which is authorized to subject nonbank financial
companies to the supervision of the Federal Reserve if the FSOC determines that, among other matters, material
financial distress at the company or the scope of the company’s activities could pose risks to the financial
stability of the United States. If we were designated by the FSOC as a systemically significant nonbank financial
company subject to supervision by the Federal Reserve, we would become subject to a comprehensive system of
prudential regulation, which is expected to include once finalized, minimum capital requirements, liquidity
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