Washington, D.C., December 4, 2019 – SIFMA today issued the following statement from Timothy W. Cameron., head of SIFMA’s Asset Management Group (SIFMA AMG) regarding guidance on nonbank financial company designations finalized today by the Financial Stability Oversight Council (FSOC): 

“SIFMA AMG has long advocated a shift away from focusing on designating asset managers as systemically important given the agency-nature of the business-model. Asset managers are directed by investor clients, generally do not hold custody of assets and, therefore, have small balance sheets. The focus should instead be on activities that may create broader risks to financial stability and as such, we welcome today’s announcement. Attention should be concentrated on products and activities that can be stabilized and strengthened through consultation with the relevant regulator and use of appropriate supervisory tools. We look forward to further examining the details of the guidance released today.” 

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SIFMA is the leading trade association for broker-dealers, investment banks and asset managers operating in the U.S. and global capital markets. On behalf of our industry’s nearly 1 million employees, we advocate on legislation, regulation and business policy, affecting retail and institutional investors, equity and fixed income markets and related products and services. We serve as an industry coordinating body to promote fair and orderly markets, informed regulatory compliance, and efficient market operations and resiliency. We also provide a forum for industry policy and professional development. SIFMA, with offices in New York and Washington, D.C., is the U.S. regional member of the Global Financial Markets Association (GFMA). For more information, visit http://www.sifma.org.