Members of the Senate Banking, Housing and Urban Affairs Committee pressed for more transparency at the Financial Stability Oversight Council during a hearing Wednesday.
Two House members introduced legislation on Tuesday that would codify procedures for increasing transparency and let firms that might be designated as systemically important address risks before official designation.
Wednesday is also the last day for people to comment on how the FSOC treats money managers. In a joint letter, SIFMA’s asset management group and the Investment Adviser Association said that money managers and the funds they manage do not present systemic risk, and that the FSOC should wait for the Securities and Exchange Commission to complete its own review.
“It is imperative that policymakers recognize that the business structure of an asset manager and the funds they manage is fundamentally different from a commercial bank, does not present systemic risk, and as such should not be subject to SIFI (systemically important financial institution) designation, which would have a significant negative impact on investors and the capital markets,” said Timothy Cameron, managing director and head of the Securities Industry and Financial Markets Association’s asset management group, and Karen Barr, president and CEO of IAA, in the joint letter.