Final US Rule on Designation of SIFIs Emphasizes the Importance of Full Engagement in the Designation Process

April 18, 2012
The Financial Stability Oversight Council (FSOC) recently issued a final rule and interpretive guidance on the designation of systemically important financial institutions (SIFIs) under the Dodd-Frank Act. The FSOC in its rulemaking explicitly acknowledged that the interpretive guidance is not binding on companies that may be considered for designation. This update discusses the significance for potential SIFIs of the FSOC’s intended treatment of the interpretive guidance, as well as the application of the process for identifying potential SIFIs to asset managers and their managed funds.