Today the Committee on Capital Markets Regulation issued a fact statement on the potential designation of asset managers as systemically important.
Based on the Committee’s analysis, there are 15 foreign and U.S. asset managers that meet the Financial Stability Board’s $1 trillion minimum threshold for SIFI designation. However, due to certain key exemptions SIFI designations would exclusively apply to U.S. asset managers.
This raises the question of whether this should be a matter solely for U.S. regulators. We also identify other conflicts between the FSB and FSOC approach to risks posed by the asset management industry.
The statement can be downloaded here.