Core Principles for Regulating the United States Financial System

This executive order establishes seven "Core Principles" for financial regulation, including empowering individual financial decisions, preventing taxpayer bailouts, and reducing regulatory burdens. It directs the Treasury Secretary to consult with financial regulators and report within 120 days on how existing laws and regulations align with or conflict with these principles, with periodic reports thereafter.

Federal Register Open PDF 82 FR 9965

Impact dates

Jun 3, 2017
Treasury Secretary initial report due on laws and regulations relative to Core Principles

Key directives

Establish seven Core Principles as policy framework for financial regulation
Treasury Secretary to consult with FSOC member agency heads
Treasury Secretary to report within 120 days on existing laws/treaties/regulations/policies promoting or inhibiting Core Principles
Subsequent periodic reports required on ongoing actions and inhibitory policies

Who is ordered

Secretary of the Treasury · Treasury

Timeline

Immediate

Core Principles established as Administration policy
Treasury Secretary directed to begin consultations with FSOC member agencies

Near term (90d)

Treasury Secretary report due by June 3, 2017 (120 days from signing)

Long term

Periodic follow-up reports on regulatory alignment with Core Principles
Potential basis for subsequent deregulatory actions based on report findings

Risks & tensions

Vague 'periodically thereafter' for follow-up reports creates uncertainty about accountability timing
Principles are broadly stated without enforcement mechanism; actual impact depends on subsequent agency action
Potential tension between 'prevent taxpayer-funded bailouts' and systemic risk management
'Rationalize the Federal financial regulatory framework' could signal consolidation but lacks specificity