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SIFMA’s Asset Management Group (SIFMA AMG) today submitted comments to the Financial Stability Board (FSB) in response to the FSB’s latest Peer Review impacting asset managers.
In its letter, SIFMA AMG expresses concern that the work being carried out by the FSB in connection with its peer review process is at odds with recent indications from the FSB that it is shifting to a products and activities approach in evaluating risk in the asset management industry. SIFMA AMG respectfully encourages FSB members, and its U.S. participants in particular, to better align this workstream with the products and activities workstream that has been publically discussed.
“SIFMA AMG is encouraged that global regulators have recognized the unique characteristics of asset managers and are shifting to a products and activities approach in evaluating risk in this industry,” said Timothy Cameron, managing director and head of SIFMA’s Asset Management Group. “While we appreciate the opportunity to provide feedback to the FSB in this peer review process, we are troubled that the various topics on which the FSB is seeking comment do not align with the recently announced products and activities approach and suggest persistent misunderstandings about the asset management industry. We believe the FSB will more effectively promote financial stability by realigning their initiatives and allowing time for individual regulators with specialized asset management expertise, such as the Securities and Exchange Commission, to complete their reviews and evaluate if any additional oversight is warranted.”
SIFMA AMG’s letter also notes its concerns regarding the truncated time frame for providing comments to the peer review and the relative lack of transparency surrounding the process. SIFMA AMG underscores that clear and consistent communication will help advance FSB’s goal of engaging subject matter experts and well-intentioned, thoughtful participants in its deliberations.
The full comment letter is available here: http://www.sifma.org/issues/item.aspx?id=8589955644
