The asset management industry should be regulated differently than banks when it comes to assessing systemic financial risk, officials at the Treasury Department said in a report released Thursday.
"The regulatory framework for both the asset management and insurance industries can be significantly improved," Treasury Secretary Steven Mnuchin said in a statement. "We are recommending more efficient and effective regulation to give consumers access to the products they need while providing individuals with opportunities to save for retirement."
Treasury officials responded to criticism from the asset management industry that they not be regulated the same way as banks. The report calls instead for "activities-based evaluations of systemic risk."
The report also offers sweeping recommendations for other regulators, including delaying the implementation of the Department of Labor's fiduciary rule pending further evaluation by the DOL, the Securities and Exchange Commission, and the states; and promoting infrastructure investment by insurers through appropriately calibrated capital requirements.
It was the third of four reports underway in response to a mandate from President Donald Trump to revisit financial regulations.
The report is available on the Treasury Department website.