The Financial Stability Oversight Council (FSOC) reports that, on December 18, it voted unanimously to issue a public request for comment (RFC) regarding “potential risks to U.S. financial stability from asset management products and activities.”
The FSOC is “seeking input from the public about potential risks to the U.S. financial system associated with liquidity and redemptions, leverage, operational functions, and resolution in the asset management industry.”
The RFC will be published in the Federal Register, at which point the public will have 60 days to submit comments, at www.regulations.gov.
The FSOC’s RFC is meant to be part of the “ongoing evaluation of asset management products and activities, building on work carried out by the Council over the past year regarding potential risks to U.S. financial stability.”
The FSOC was established under the Dodd-Frank legislation, to provide, “for the first time, comprehensive monitoring of the stability of our nation’s financial system. The Council is charged with identifying risks to the financial stability of the United States; promoting market discipline; and responding to emerging risks to the stability of the United States’ financial system,” according to a statement on the FSOC website. “The Council consists of 10 voting members and 5 nonvoting members and brings together the expertise of federal financial regulators, state regulators, and an independent insurance expert appointed by the President.”
FSOC member agencies include the Board of Governors of the Federal Reserve System, the CFTC, the Federal Deposit Insurance Corporation, the Federal Housing Finance Agency, the National Credit Union Administration, the Office of the Comptroller of the Currency, the SEC, the Treasury Department and the Consumer Financial Protection Bureau.
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