Council Seeks Public Comment on Potential Financial Stability Risks Related to Liquidity and Redemptions, Leverage, Operational Functions, and Resolution
WASHINGTON – The Financial Stability Oversight Council (Council) today voted unanimously to release a notice seeking public comment regarding potential risks to U.S. financial stability from asset management products and activities. The Council is seeking input from the public about potential risks to the U.S. financial system associated with liquidity and redemptions, leverage, operational functions, and resolution in the asset management industry.
Asset management is a vital segment of the financial services sector, with a high degree of diversity in investment strategies, corporate structures, regulatory regimes, and customers. The Council is issuing this notice in connection with its ongoing evaluation of asset management products and activities, building on work carried out by the Council over the past year regarding potential risks to U.S. financial stability.
Earlier this year, the Council’s Deputies Committee hosted a public conference on the asset management industry and its activities. At the conference, practitioners – including CEOs, treasurers, and risk officers – as well as academics and other stakeholders discussed a variety of topics related to the industry. The Council subsequently directed staff to undertake a more focused analysis of industry-wide products and activities to assess potential risks associated with the asset management industry. The notice released today provides another important mechanism to solicit input from the public and builds upon the Council’s prior public engagement in this area.
The notice has been submitted to the Federal Register for publication. Once published, the public will have 60 days to submit comments. Members of the public are encouraged to submit comments, and all comments provided to the Council will be available on www.regulations.gov.
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