SIFMA AMG Encouraged by the FSB’s Prioritization of an Activities-Based Approach to Evaluating Asset Management Risk

Release Date: July 30, 2015
Contact: Liz Pierce, 212-313-1173, [email protected]

SIFMA AMG Encouraged by the FSB’s Prioritization of an Activities-Based Approach to Evaluating Asset Management Risk

Washington, DC, July 30, 2015 – SIFMA today released the following statement from Timothy Cameron, managing director and head of SIFMA’s Asset Management Group (SIFMA AMG), after the Financial Stability Board (FSB) issued a statement noting that it will prioritize a review of asset manager activities before considering any asset management entities for designation as systemically important:

“SIFMA’s Asset Management Group is encouraged by the FSB’s statement that it will prioritize the review of asset management activities in its effort to evaluate risk in this industry. We appreciate that the FSB has considered the numerous comments it has received regarding the unique characteristics of asset managers and has put on hold its misguided efforts to consider firms or funds for SIFI designation. Going forward, we believe it is essential that the FSB proceed transparently and engage with the industry though a consultation process prior to developing any activities-based policy recommendations.

“Furthermore, we continue to believe that asset managers and the funds they manage do not present systemic risk, and the FSB should permanently drop its asset management entity assessment methodology workstream. The most effective way for the FSB to promote financial stability is to allow time for individual regulators with specialized asset management expertise, such as the Securities and Exchange Commission, to complete their own reviews of activities and evaluate if any additional oversight is warranted.”