In a set of comments sent to the Financial Stability Board (FSB) on September 21, the Securities Industry and Financial Markets Association’s (SIFMA) Asset Management Group (AMG) expressed their general approval of the recommendations made in a recent consultation, while offering additional detailed input.
Overall, the SIFMA AMG approved of the general aims of the recommendations made in the FSB’s Proposed Policy Recommendations to Address Structural Vulnerabilities from Asset Management Activities, but also offered input on issues relating to liquidity, leverage, operational risk, and securities lending. The comments submitted by SIFMA AMG present evidence that many of the concerns laid out in the consultative document are already addressed by the deep and complex regulatory framework that presently exists to govern the everyday operations of asset managers and investment funds.
“We appreciate the FSB’s efforts to recognize the differences between asset management and other financial services firms, and support the FSB’s acknowledgement of the role of securities regulators,” Timothy Cameron, managing director and head of SIFMA AMG said. “Our goal is to provide the FSB with information to further inform their approach to and views of asset management as unique and well-equipped to continue its track record for successfully meeting shareholder redemptions through normal and stress conditions without presenting a systemic risk to global financial stability.”