Voya 2014 Annual Report Download - page 79

funding agreements, structured settlements and deposit administration contracts which the CFTC and
SEC determined should be considered in a facts and circumstances analysis. As a result, there remains
some uncertainty regarding the applicability of the definitions of “swap” and “security-based swap” to
some products offered by us. We do not believe our products come within the definition of “swap” or
“security-based swap.” However, if any products issued by us meet the criteria for either definition
they would be subject to regulation under the Dodd-Frank Act, including clearing of certain
standardized transactions through a centralized clearinghouse, execution of certain standardized trades
on a centralized exchange and related reporting requirements. The legislation also requires the SEC and
CFTC to conduct a study to determine whether stable value contracts fall within the definition of swap
contracts, and if so, to determine whether an exemption to their regulation is appropriate. The SEC and
CFTC are considering the study in light of the adoption of the rules described above. Stable value
contracts are exempt from the legislation’s swap provisions, pending the effective date of any such
regulatory action.
• The Dodd-Frank Act established FIO within the Treasury Department to be headed by a director
appointed by the Secretary of the Treasury. See “—Insurance Regulation—Federal Initiatives
Affecting Insurance Operations” above.
• The Dodd-Frank Act established the Consumer Financial Protection Bureau (the “CFPB”) as an
independent agency within the Federal Reserve to regulate consumer financial products and services
offered primarily for personal, family or household purposes, with rule-making and enforcement
authority over unfair, deceptive or abusive acts and practices. However, the legislation does not give
the CFPB jurisdiction over insurance products or services, or over persons regulated by a state
insurance regulator, subject to exceptions for certain non-insurance consumer financial products or
services. In addition, broker-dealers and investment advisers are not subject to the CFPB’s jurisdiction
when acting in their registered capacity. Employee benefit plans and other retirement products are
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 financial crisis of 2008-09 are being actively reviewed by lawmakers and regulators
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 designated 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.
56