ICI on Recent White Testimony
ICI posted the comment, "ICYMI: Congress Asks Questions About SIFI Designation and Asset Managers; SEC Chair White Provides Telling Answers" last week. It says, "DC scene setter, 2013–2014: The Financial Stability Oversight Council (FSOC) is examining asset managers for possible "systemically important financial institution" (SIFI) designation, which would bring with it enhanced prudential regulation from the Federal Reserve. Such "bank-style" regulation is foreign to U.S. capital markets. Capitol Hill engages, April 29: In its Securities and Exchange Commission (SEC) oversight hearing, the House Financial Services Committee spent significant time talking to SEC Chair Mary Jo White about FSOC's review of asset managers. Chairman Jeb Hensarling (R-TX) focused his questions for SEC Chair White on the issue, as did other members of the committee; Chairman White provided some telling answers." In her testimony, the SEC Chair: Stated that the SEC has the existing authority and expertise to regulate the asset management industry; Explained the fundamental differences between banks and asset managers; and, Confirmed that "concerns" are "real" about the potential negative impact that designation could have on investors in a SIFI-designated fund. ICI's view: The FSOC should listen to its esteemed colleague at the SEC -- the only regulator with significant capital-markets expertise and extensive experience regulating mutual funds -- when it comes to discussion and deliberation of asset management issues." Note: ICI will host its annual General Membership Meeting May 20-22 in Washington, and SEC Chair Mary Jo White will speak the morning of May 22.
