Financial Stability Board Issues Activities-Based Recommendations for the Global Asset Management Industry

January 24, 2017

The G-20’s Financial Stability Board (FSB) on January 12, 2017 issued Policy Recommendations to Address Structural Vulnerabilities from Asset Management Activities (Recommendations), covering four areas of concern: (i) liquidity mismatch; (ii) leverage; (iii) operational risk; and (iv) securities lending activities. The FSB will look to the International Organization of Securities Commissions (IOSCO) to review IOSCO’s existing guidance and, as appropriate, enhance this guidance in light of the Recommendations. As discussed below, the U.S. Securities and Exchange Commission (SEC) either has adopted or proposed rules covering many areas addressed by the Recommendations.

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