2025 ANNUAL REPORT - Financial Stability Oversight Council - Statutory Purposes and Members

Sep 18, 2026

2025 Annual Report of the Financial Stability Oversight Council outlines the Council’s statutory mission under the Dodd-Frank Act. It explains three core purposes: identifying risks to U.S. financial stability, promoting market discipline by preventing expectations of government loss shielding, and responding to emerging threats. The report also describes the Council’s structure, including voting and nonvoting members, and lists annual report statutory requirements, approval date, and key agency abbreviations.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages87

Reading Time3 h 39 min

AccessFree to download

Statutory Requirements for the Annual Report

Approval of the Annual Report

Letter from the Chairperson

Council’s purposes under the Dodd-Frank Act

Economic growth and financial stability

2025 ANNUAL REPORT Financial Stability Oversight Council The Financial Stability Oversight Council (Council) was established by the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) and is charged with three purposes: 1. To identify risks to the financial stability of the United States (U.S.) that could arise from the material financial distress or failure, or ongoing activities, of large, interconnected bank holding companies or nonbank financial companies, or that could arise outside the financial services marketplace. 2. To promote market discipline by eliminating expectations on the part of shareholders, creditors, and counterparties of such companies that the U.S. government will shield them from losses in the event of failure. 3. To respond to emerging threats to the stability of the U.S. financial system. Pursuant to the Dodd-Frank Act, the Council consists often voting members and five nonvoting members and brings together the expertise of federal financial regulators, state regulators, and an insurance expert appointed by the President. The voting members are: • the Secretary of the Treasury, who serves as the Chairperson of the Council; • the Chair of the Board of Governors ofthe Federal Reserve System; • the Comptroller of the Currency; • the Director of the Consumer Financial Protection Bureau; • the Chairman of the Securities and Exchange Commission; • the Chairman of the Federal Deposit Insurance Corporation; • the Chairman of the Commodity Futures Trading Commission; • the Director of the Federal Housing Finance Agency; • the Chairman of the National Credit Union Administration; and • an independent member having insurance expertise who is appointed by the President and confirmed by the Senate for a six-year term. The nonvoting members, who serve in an advisory capacity, are: • the Director of the Office of Financial Research; • the Director of the Federal Insurance Office; • a state insurance commissioner designated by the state insurance commissioners; • a state banking supervisor designated by the state banking supervisors; and • a state securities commissioner (or officer performing like functions) designated by the state securities commissioners. The state insurance commissioner, state banking supervisor, and state securities commissioner serve two-year terms. 2025 FSOC Annual Report Page 2 Financial Stability Oversight Council Statutory Requirements for the Annual Report Section 112(a)(2)(N) of the Dodd-Frank Act requires that the Council’s annual report address the following: 1. the activities of the Council; 2. significant financial market and regulatory developments, including insurance and accounting regulations and standards, along with an assessment of those developments on the stability of the financial system; 3. potential emerging threats to the financial stability of the United States; 4. all determinations made under Section 113 or Title VIII and the basis for such determinations; 5. all recommendations made under Section 119 and the result of such recommendations; and 6. recommendations— a. to enhance the integrity, efficiency, competitiveness, and stability of United States financial markets; b. to promote market discipline; and c. to maintain investor confidence. Approval of the Annual Report This annual report was approved by the voting members of the Council on December 11, 2025. Abbreviations for Council member agencies and member agency offices: • Department of the Treasury (Treasury) • Board of Governors ofthe Federal Reserve System (Federal Reserve) • Office of the Comptroller of the Currency (OCC) • Consumer Financial Protection Bureau (CFPB) • Securities and Exchange Commission (SEC) • Federal Deposit Insurance Corporation (FDIC) • Commodity Futures Trading Commission (CFTC) • Federal Housing Finance Agency (FHFA) • National Credit Union Administration (NCUA) • Of

FAQs

What are the three purposes of the Financial Stability Oversight Council in the 2025 annual report?

The report states the Council must identify risks to U.S. financial stability, promote market discipline by eliminating expectations of loss shielding, and respond to emerging threats to the stability of the U.S. financial system.

How is the Council structured regarding voting and nonvoting members?

The Council consists of ten voting members and five nonvoting members. The nonvoting members serve in an advisory capacity.

What topics must the annual report address under Section 112(a)(2)(N) of the Dodd-Frank Act?

The annual report must cover the Council’s activities; significant market and regulatory developments and their effects on financial stability; potential emerging threats; determinations under Section 113 or Title VIII and their basis; recommendations under Section 119 and the results; and recommendations to enhance U.S. financial markets and promote discipline and investor confidence.

Sep 18, 2026

Uploaded by Oliver Hayes