The Financial Stability Oversight Council has voted to changehow it designates non-bank financial institutions as systemicallyimportant, or “too big to fail.”

The vote by the council this week came after sustainedcomplaints that FSOC’s review process of the country’s largestfinancial institutions lacked transparency. It also coincided withrenewed effortsin Congress to rein in the council’s authority.

The FSOC was created by the Dodd-Frank Act to overseeinstitutions large enough to shock the overall economy were they tofail. Treasury Secretary Jack Lew chairs the council. The chairs ofthe Federal Reserve, Securities and Exchange Commission and theFederal Deposit Insurance Corp. are among its 10 votingmembers.

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Nick Thornton

Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.