FSB and IOSCO Propose Assessment Methodologies for Identifying Non-Bank Non-Insurer G-SIFIs

The Financial Stability Board ("FSB") and the International Organization of Securities Commissions ("IOSCO") published a public consultation document titled "Assessment Methodologies for Identifying Non-Bank Non-Insurer Global Systemically Important Financial Institutions." It is the second consultation document by FSB and IOSCO on the subject.

The publication outlines a methodology for assessing asset managers and investment funds for possible designation as global systemically important financial institutions ("G-SIFIs"), extending the SIFI framework that currently covers banks and insurers to other financial institutions. The proposed methodologies take into account responses received on the first consultation document, which was issued on January 8, 2014.

The proposed methodologies consist of (a) a high-level framework for identifying G-SIFIs that would apply across non-bank non-insurer ("NBNI") financial entities and (b) detailed NBNI sector-specific methodologies that include (i) near-final methodologies for finance companies and market intermediaries, and (ii) a revised proposal for sector-specific methodologies for asset management entities; i.e., a revised methodology for investment funds (including hedge funds) and a new proposed methodology for asset managers.

Comments on the publication must be submitted by May 29, 2015.

See: Consultation Document: Assessment Methodologies for Identifying Non-Bank Non-Insurer Global Systemically Important Financial Institutions; click here to submit comments.See also: SIFMA Comment Letter.