Newsflash: Financial Stability Board Issues Proposed Recommendations to Address Perceived Structural Vulnerabilities in the Asset Management Sector

June 23, 2016

The Financial Stability Board (FSB), which was established by the G-20 in response to the 2008 financial crisis, on June 22, 2016 issued proposed specific recommendations to address certain perceived threats that the asset management sector could pose to financial stability (Proposal). In the Proposal, the FSB poses a series of questions for public comment by September 21, 2016.

The FSB had previously issued two proposals in 2014 and 2015, which were directed at identifying individual funds and asset managers (principally impacting U.S. entities) as globally significant entities that would have been subject to enhanced prudential regulation. In the summer of 2015, the FSB instead shifted to an analysis of risks created by activities and products that might require greater regulation of the entire industry.

Read "Financial Stability Board Issues Proposed Recommendations to Address Perceived Structural Vulnerabilities in the Asset Management Sector."