Further regulation of money managers by the Financial Stability Oversight Council is not on the immediate horizon, current and former officials said Friday.
“It’s certainly very premature to talk about any action right now,” Patrick Pinschmidt, deputy assistant Treasury secretary for the FSOC, told attendees at a Brookings Institution forum on asset management and financial stability.
Mr. Pinschmidt said the FSOC is “still in the risk identification phase of its work” and is waiting for more public input.
On Dec. 24, FSOC officials published a notice in the Federal Register asking for public comment on the potential risks to the U.S. financial system from the money management industry associated with liquidity and redemptions, leverage, operational functions, and resolution. Comments are due Feb. 23. “There is no predetermined outcome here,” Mr. Pinschmidt said. “Once that information comes in, the council will be in a much better position to understand.”
Barbara Novick, vice chairwoman and head of government relations for BlackRock, stressed that “2015 is not 2008” and credited regulators for their efforts to date to regulate certain market activities. “All those things have implications for market liquidity,” Ms. Novick added.