Commission on International Coordination of Financial Regulation Act

Summary: Commission on International Coordination of Financial Regulation Act - Establishes the Commission on International Coordination of Financial Regulation to:  (1) identify the various regulatory bodies and mechanisms pertaining to international capital markets, including those used by governments to manage international capital market instability; (2) appraise the adequacy of cooperation between such various regulators; (3) propose solutions for improving such cooperation; (4) identify the various methods used by countries to enforce capital market regulations and the adequacy of international cooperation; (5) propose solutions for improving global regulatory enforcement of the international financial system; (6) analyze the major clearing and settlement systems and their impact upon the stability of other payments and settlements systems; (7) propose solutions for improving coordination among major clearing and settlements systems; (8) identify and analyze the role of "off-shore tax havens" in the international capital markets; and (9) propose solutions for minimizing any adverse effect that tax havens may have on the international financial system. 
 Directs the Commission to report to the Congress and the President on its findings and recommendations.  Authorizes appropriations.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Commission on International 
Coordination of Financial Regulation Act''.

SEC. 2. FINDINGS AND PURPOSE.

    (a) Findings.--The Congress hereby finds the following:
            (1) Innovation in financial services and products is 
        outpacing the ability of regulatory bodies to monitor and 
        control the stability of the international financial system.
            (2) The rapid growth and integration of international 
        capital markets has resulted in a volume of financial 
        transactions that exceeds the resources of any single country 
        and any single regulatory body.
            (3) Although most countries have regulatory bodies that 
        govern the operation of each such country's financial markets 
        and participants, the globalization of the financial markets 
        requires better efforts to coordinate international regulation 
        and supervision.
            (4) Financial regulators in the United States pursue 
        separate strategies for dealing with international financial 
        issues, including derivative financial instruments, often with 
        inadequate communication among themselves and their foreign 
        counterparts.
            (5) Given the increased globalization of financial markets, 
        it is imperative that regulators establish an effective system 
        of crisis management to deal with any shock to international 
        financial markets.
            (6) As market participants continue to globalize their 
        operations, financial regulatory bodies must develop a 
        coordinated approach to enforcement actions.
            (7) Large differences in the operations of the world's 
        major clearing and settlement systems, in terms of both 
        efficiency and risk, pose a threat to the stability of the 
        international financial system.
            (8) Because financial assets directed through so-called 
        ``off-shore tax havens'' are growing, such off-shore tax havens 
        need to be identified and their role in the international 
        financial system, the reasons for their growth, and the effect 
        of their unrestricted growth on the international financial 
        system need to be fully examined.
    (b) Purpose.--It is the purpose of this Act to provide for the 
United States to play a leadership role in--
            (1) ensuring a stable and efficient international financial 
        system; and
            (2) enhancing cooperation among financial regulatory bodies 
        around the world.

SEC. 3. COMMISSION ON INTERNATIONAL COORDINATION OF FINANCIAL 
              REGULATION.

    There is hereby established the Commission on International 
Coordination of Financial Regulation, an advisory committee under the 
Federal Advisory Committee Act, hereafter in this Act referred to as 
the ``Commission''.

SEC. 4. DUTIES.

    The duties of the Commission are as follows:
            (1) Identify the various regulatory bodies and mechanisms 
        that are used to regulate and supervise international capital 
        markets, including mechanisms that governments employ to manage 
        international capital market instability.
            (2) Appraise the adequacy of the cooperation between the 
        various regulatory entities and mechanisms referred to in 
        paragraph (1).
            (3) Propose solutions for improving cooperation among the 
        various regulatory bodies and mechanisms, including a proposal, 
        if feasible, for establishing a single international body or 
        mechanism with responsibility for coordinating international 
        regulation and promoting the stability of the international 
        financial system.
            (4) Identify the various enforcement methods which 
        countries use to enforce laws and regulations relating to 
        capital markets and the extent and adequacy of cooperation 
        among regulators in taking enforcement actions.
            (5) Propose solutions for improving global enforcement of 
        laws and regulations relating to capital markets and other 
        aspects of the international financial system.
            (6) Analyze the major clearing and settlement systems and 
        the differences among those systems in terms of volume, risk, 
        and efficiency and evaluate the impact each system has on the 
        stability of the other major payments and settlements systems.
            (7) Propose solutions for improving coordination among the 
        major clearing and settlement systems, including programs to 
        raise the quality of the weaker systems.
            (8) Identify all so-called ``off-shore tax havens'' and 
        analyze their role in the international capital markets and the 
        reasons for their growth.
            (9) Propose solutions for minimizing any adverse effect the 
        growth of the ``tax havens'' may have on the international 
        financial system, including, if warranted, a proposal for 
        curbing the growth of such havens.

SEC. 5. MEMBERSHIP.

    (a) Number and Appointment.--The Commission shall consist of 15 
members as follows:
            (1) The Chairman of the Board of Governors of the Federal 
        Reserve System or the Chairman's designee.
            (2) The Secretary of the Treasury or the Secretary's 
        designee.
            (3) The Chairman of the Securities and Exchange Commission 
        or the Chairman's designee.
            (4) 6 members appointed by the President.
            (5) 3 members appointed by the Speaker and the minority 
        leader of the House of Representatives, acting jointly, not 
        more than 2 of whom may be members of the same political party.
            (6) 3 members appointed by the majority leader and the 
        minority leader of the Senate, acting jointly, not more than 2 
        of whom may be members of the same political party.
    (b) Qualifications of Appointed Members.--The members appointed 
pursuant to paragraphs (4), (5), and (6) of subsection (a) shall be 
appointed from among individuals who--
            (1) are specially qualified to serve on the Commission by 
        reason of their education, training, and experience in 
        international finance and business, accounting, currency 
        transactions, the international payment system, trade matters, 
        banking, or securities; and
            (2) have a broad understanding of the global economy.
    (c) Terms.--Members shall be appointed for the life of the 
Commission.
    (d) Initial Appointments.--The initial members of the Commission 
shall be appointed before the end of the 30-day period beginning on the 
date of the enactment of this Act.
    (e) Vacancy.--A vacancy on the Commission shall be filled in the 
manner in which the original appointment was made.
    (f) Removal.--An appointed member of the Commission may be removed 
only for malfeasance in office.
    (g) Quorum.--5 members shall constitute a quorum.
    (h) Chairperson.--The President shall designate a chairperson of 
the Commission from among members appointed under paragraph (4), (5), 
or (6) of subsection (a).
    (i) Meetings.--The Commission shall meet at the call of the 
Chairperson or a majority of the members.
    (j) Policy Actions.--No action establishing a policy or 
recommendation of the Commission may be adopted without the approval of 
at least 8 members.
    (k) Travel and Per Diem.--Members of the Commission shall be paid 
actual travel expenses and per diem in lieu of subsistence expenses in 
accordance with section 5703 of title 5, United States Code.

SEC. 6. DIRECTOR AND STAFF.

    (a) Director.--The principal administrative officer of the 
Commission shall be a director who shall--
            (1) be appointed by the Commission;
            (2) be paid at a rate not to exceed the maximum rate 
        payable under section 5376 of title 5, United States Code; and
            (3) serve on a full-time basis.
    (b) Staff.--
            (1) In general.--With the approval of the Commission, the 
        director may appoint and fix the pay of such personnel as the 
        director determines to be appropriate.
            (2) Applicability of certain civil service laws.--The staff 
        of the Commission shall be appointed subject to the provisions 
        of title 5, United States Code, governing appointments in the 
        competitive service, and shall be paid in accordance with the 
        provisions of chapter 51 and subchapter III of chapter 53 of 
        that title relating to classification and General Schedule pay 
        rates.
            (3) Temporary staff.--With the approval of the Commission, 
        the director may appoint such employees as may be necessary to 
        carry out the functions of the Commission for a period of not 
        more than 1 year, without regard to the provisions of title 5, 
        United States Code, governing appointments in the competitive 
        service, and without regard to the provisions of chapter 51 and 
        subchapter III of chapter 53 of such title, except that the 
        rates of pay for such temporary staff shall not exceed the 
        maximum rate payable under section 5376 of title 5, United 
        States Code.
    (c) Experts and Consultants.--With the approval of the Commission, 
the director may procure temporary and intermittent services under 
section 3109(b) of title 5, United States Code at rates for individuals 
not to exceed the maximum rate payable under section 5376 of title 5, 
United States Code.
    (d) Staff of Federal Agencies.--Upon the request of the Commission, 
the head of any Federal department or agency may detail any of the 
personnel of that department or agency to the Commission to assist the 
Commission in carrying out its duties under this Act.

SEC. 7. POWERS OF THE COMMISSION.

    (a) Hearings and Sessions.--The Commission may, for the purpose of 
carrying out this Act--
            (1) hold hearings, sit and act at times and places, take 
        testimony, and receive evidence as the Commission considers 
        appropriate; and
            (2) administer oaths or affirmations to witnesses appearing 
        before the Commission.
    (b) Obtaining Official Data.--
            (1) In general.--The Commission may secure directly from 
        any department or agency of the United States information 
        necessary to enable it to carry out this Act.
            (2) Provision of information.--Upon the request of the 
        Chairperson of the Commission, the head of any department or 
        agency of the United States shall furnish that information to 
        the Commission.
    (c) Gifts, Bequests, and Devises.--
            (1) In general.--The Commission may accept, use, and 
        dispose of gifts, bequests, or devises of services or property, 
        both real and personal, for the purpose of aiding or 
        facilitating the work of the Commission.
            (2) Deposit and disbursement.--Gifts, bequests, or devises 
        of money and proceeds from sales of other property received as 
        gifts, bequests, or devises shall be deposited in the Treasury 
        and shall be available for disbursement upon order of the 
        Commission.
    (d) Administrative Support Services.--Upon the request of the 
Commission, the Administrator of General Services shall provide to the 
Commission, on a reimbursable basis, the administrative support 
services necessary for the Commission to carry out its responsibilities 
under this Act.
    (e) Mails.--The Commission may use the United States mails in the 
same manner and under the same conditions as other departments and 
agencies of the United States.

SEC. 8. REPORT

    (a) Report Required.--The Commission shall submit a final report to 
the President and the Congress before the end of the 18-month period 
beginning on the date of the enactment of this Act.
    (b) Contents of Report.--The report shall contain a detailed 
statement of the findings and conclusions of the Commission, together 
with the Commission's recommendations for such legislative and 
administrative actions as the Commission considers appropriate.

SEC. 9. TERMINATION.

    The Commission shall terminate 30 days after submitting the report 
pursuant to section 8.

SEC. 10. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated for the fiscal years 1995 
and 1996 not to exceed $2,000,000 to carry out the purposes of this 
Act.