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Treasury Urges Principles-Based Regulation of Money Managers

Posted in Fund Regulation, Investment Adviser Regulation

The U.S. Department of the Treasury’s report on asset management and insurance recommends, among other things, a delay in implementation of the SEC’s liquidity risk management rule and the Department of Labor’s fiduciary rule.

The October 2017 report is the third of four that address the president’s Core Principles to regulate the U.S. financial system, signed by executive order in February 2017. The report recommends that the Financial Stability Oversight Counsel (FSOC), which broadly oversees systemic risks to the U.S. financial system, back off on entity-based systemic risk evaluations of asset managers, and that the SEC focus on potential risks that arise from asset management and on strengthening the asset management industry as a whole.

Read our client alert.

Morrison & Foerster’s Jay G. Baris summarizes the provisions of the report that directly affect regulation of investment companies and investment managers in this ThinkingCapMarkets podcast.