The Financial Stability Oversight Council has adopted a rule that will designate some private-equity firms, hedge funds, insurers and other nonbank financial firms as "systemically important financial institutions." The move will increase the regulatory body's oversight of such firms. "It's a big deal," said Scott Talbott, senior vice president of government affairs for The Financial Services Roundtable. "It will permanently divide the industry into two groups — SIFIs and non-SIFIs."

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