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.

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