The Financial Stability Oversight Council (FSOC), administered by the US Treasury, has asked its staff to conduct "a more focused analysis" of activities and products in the asset management industry rather than individual firms.
However, the council didn’t indicate which asset-management activities or products it would review.
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The shift by the FSOC lessens the likelihood individual asset managers will be labeled "systemically important" — a designation that would draw them in for greater oversight by the Federal Reserve.
The council also said that it would continue keep an eye the Securities and Exchange Commission-mandated reform of the money-market mutual fund sector, which includes potential temporary suspensions on redemptions, or gates, and liquidity fees.
FSOC, which includes representatives of the major US regulators, has already designated three non-bank firms as systemically important financial institutions: GE Capital and the insurers AIG and Prudential Financial.
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By GlobalData
