The U.S. Financial Services Roundtable is calling for more principles-based financial regulation, among 68 reforms that it believes are necessary to improve the competitiveness of the U.S. financial industry.

The so-called Blueprint for U.S. Financial Competitiveness is an action plan, which seeks to ensure that the US maintains a competitive position in the global financial marketplace through principles-based regulation. The plan was conceived by the 62-member Blue Ribbon Commission on Enhancing Competitiveness created by The Financial Services Roundtable and chaired by Richard Kovacevich, chairman of Wells Fargo & Company; and, Jamie Dimon, chairman and CEO, JPMorgan Chase and Co.

Within the past year, three reports on U.S. financial competitiveness have called for a system of principles-based regulation. The commission’s blueprint offers 68 specific recommendations and identifies the six guiding principles that it says form the foundation of a stronger regulatory system.

The guiding principles are: fair treatment for consumers; competitive and innovative financial markets, proportionate, risk-based regulation; prudential supervision and enforcement; options for serving consumers; and, management responsibilities

The blueprint targets eight specific policy areas where principles-based financial regulation could be implemented to achieve better policy and regulatory outcomes for financial services firms and their consumers. They are prudential supervision, litigation reform, consumer credit and opportunities for long-term financial security, anti-money laundering, risk- based capital regulation, insurance regulation, Sarbanes-Oxley Act (Section 404), and U.S. and international accounting standards.

It also endorses charter choice for financial firms, a key component of which is the modernization of existing depository institution charters. This would involve removing outdated restrictions and impediments to competition. It also calls for the creation of three new national charter options for financial services firms: an optional national insurance charter, an optional national securities charter, and an optional universal financial services charter.

“The Blueprint is a call for better regulation, not a call for less regulation,” said Steve Bartlett, president and CEO of The Financial Services Roundtable. “Our proposed reforms and specific recommendations are intended to serve and protect consumers, promote economic growth, job creation, and market stability through a combination of better regulation and the enhanced competitiveness of the financial services industry.”

“U.S. financial firms and financial markets are facing significant competitive challenges from foreign firms and foreign regulatory regimes,” Bartlett said. “This competitive challenge hurts the American consumer by hamstringing U.S. companies’ ability to serve them effectively and efficiently. The U.S. needs to respond to these challenges. To meet these challenges, the U.S. regulatory system must change.

“The name of this document-Blueprint-was chosen deliberately. It is a blueprint for action, not a report to be studied. And the time to act is now.”