SIFMA today released the following statement from Tim Cameron, SIFMA Managing Director and head of SIFMA’s Asset Management Group (SIFMA AMG) expressing opposition to a legislative proposal that would change the process of automatic designation of non-bank entities as systemically important.
“SIFMA AMG opposes these proposed changes to the non-bank financial company designation process. We have long advocated a shift away from focusing on potentially designating specific non-bank companies as systemically important, and instead focus on activities that may create broader risks to financial stability. Attention should be concentrated on the parts of the financial system that can actually lead to contagion risk and the products and activities that can be stabilized and strengthened through consultation with the relevant regulator and use of appropriate supervisory tools.”
