SIFMA today issued the following statement from Timothy W. Cameron., head of SIFMA’s Asset Management Group (SIFMA AMG) regarding guidance on nonbank financial company designations finalized today by the Financial Stability Oversight Council (FSOC):
“SIFMA AMG has long advocated a shift away from focusing on designating asset managers as systemically important given the agency-nature of the business-model. Asset managers are directed by investor clients, generally do not hold custody of assets and, therefore, have small balance sheets. The focus should instead be on activities that may create broader risks to financial stability and as such, we welcome today’s announcement. Attention should be concentrated on products and activities that can be stabilized and strengthened through consultation with the relevant regulator and use of appropriate supervisory tools. We look forward to further examining the details of the guidance released today.”
