Financial Stability Board to Go Slow on Risk Analysis of Investment Funds

The Financial Stability Board (FSB) announced that it had decided to wait to finalise the assessment methodologies for non-bank non-insurer global systemically important financial institutions (NBNI G-SIFIs) until the current FSB work on financial stability risks from asset management activities is completed.  SIFMA Asset Management Group (“SIFMA AMG”) applauded FSB’s decision.  SIFMA AMG also stressed the need for transparency in FSB proceedings and noted that industry engagement and consulting should precede any activity-based policy recommendations. SIFMA AMG recommended that the FSB conclude its asset management entity assessment workstream and allow specialized individual regulators to review the activities of asset managers and their respective funds.

Lofchie Comment: FSB’s decision is consistent with prior SIFMA AMG recommentations.

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