SIFMA AMG Expresses Concern with FSB's Peer Review of Asset Management Industry (with Lofchie Comment)

SIFMA Asset Management Group ("SIFMA AMG") expressed concern that the work carried out by the Financial Stability Board ("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."In its comment letter, SIFMA AMG urged the FSB to realign its initiatives and allow time for individual regulators with specialized asset management expertise to complete their reviews and evaluate if any additional oversight is warranted.

Lofchie Comment: When the FSB titles its study of the asset management industry as a review of "shadow banking," then it is pretty clear the direction in which FSB is headed. Asset management is neither banking, nor is it in the shadows. In fact, if one had to compare the transparency of, for example, SEC-registered investment companies vs. the FSB, there is no doubt as to which would be the winner.

See: SIFMA AMG Comment Letter to the FSB; SIFMA Press Release.See also: FSB Thematic Peer Review on the Implementation of FSB Policy Framework for Other Shadow Banking Entities; Handbook for FSB Peer Reviews.Related News: Senate Banking Committee Holds Hearing Regarding the Role of FSB (with Delta Strategy Group Summary) (with Lofchie Comment) (July 8, 2015).