April 30, 1993
TO: BOARD OF GOVERNORS NO. 40-93
RE: CHICAGO MERCANTILE EXCHANGE PROPOSAL FOR REGULATORY
CONSOLIDATION
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The Chicago Mercantile Exchange recently issued the
attached proposal to consolidate federal financial regulation in
a single cabinet-level department, called the "Federal Financial
Regulatory Service" that would be organized along "modified
functional lines."
Under the proposal, all federal banking, securities,
commodities, and pension regulation would be consolidated into
the FFRS. The FFRS would be governed by a nine-member board and
would be divided into eight operating divisions. One of these
divisions would be called the "Division of Fiduciaries and Pooled
Vehicles," and would be responsible for investment advisers and
for all varieties of pooled funds including "[m]utual funds,
closed-end investment companies, commodity pools, bank commingled
and collective trusts, insurance company separate accounts
serving multiple clients, and trusts under ERISA plans."
Matthew P. Fink
President
Attachment