The Financial Stability Oversight Council voted unanimously in December to seek public comment regarding potential risks to U.S. financial stability from asset management products and activities. This document describes what the FSOC is looking for.
The Council seeks input from the public until February18, 2015 about potential risks to the U.S. financial system associated with liquidity and redemptions, leverage, operational functions, and resolution in the asset management industry.
“Asset management is a vital segment of the financial services sector, with a high degree of diversity in investment strategies, corporate structures, regulatory regimes, and customers,” the FSOC said in a release. “The Council is issuing this notice in connection with its ongoing evaluation of asset management products and activities, building on work carried out by the Council over the past year regarding potential risks to U.S. financial stability.”
Earlier in 2014, the Council’s Deputies Committee hosted a public conference on the asset management industry and its activities. At the conference, practitioners – including CEOs, treasurers, and risk officers – as well as academics and other stakeholders discussed a variety of topics related to the industry.
The Council subsequently directed staff to undertake a more focused analysis of industry-wide products and activities to assess potential risks associated with the asset management industry. Members of the public are encouraged to submit comments, and all comments provided to the Council will be available on www.regulations.gov.
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