US Financial Stability Oversight Council Requests Comments on Financial Stability Implications of Asset Management Activities

December 19, 2014

The Financial Stability Oversight Council (“FSOC”) has taken the next step in its consideration of the asset management industry, by issuing a notice requesting public comment on whether asset management products and activities may pose potential risks to the U.S. financial system (“Notice”). In this regard, the FSOC has decided to analyze industry-wide asset management products and activities to assess potential financial stability risks. This may be viewed as a move away from focusing on potential designations of individual asset managers or asset management vehicles as systemically important financial institutions (“SIFIs”) and a move toward greater prudential regulation of the overall industry.

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