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FSOC Asset Manager Study

In a recent letter, a bipartisan group of Congressmen have requested that the Financial Stability Oversight Council (FSOC) publicly disclose the results of an ongoing study regarding the extent to which asset managers, including mutual fund managers, might pose a systemic risk.  They also requested that the FSOC "refrain from taking action on asset management firms until the study is completed and sufficient time has been given for the public to digest the study's conclusions."

In April, the FSOC adopted final rules on the process for designating non-bank entities as systemically important financial institutions or SIFIs.  SIFIs will be subject to Federal Reserve supervision and could be required to meet new capital and liquidity requirements.  In the adopting release, the FSOC stated that it "may develop additional guidance regarding potential metrics and thresholds relevant to determinations regarding asset managers, as appropriate."  The lawmakers urged in their letter that any such additional guidance be published well in advance of designating an asset management company as a SIFI.