Non-bank Sifis not likely to include hedge funds

Author: | Published: 18 Oct 2011

Most hedge funds will not be deemed systemically important financial institutions (Sifis) subject to capital and liquidity requirements if the Financial Stability Oversight Counsel’s (FSOC) October 11 proposal is enacted. "It’s probably going to be good for hedge funds. In some ways it’s useful because the first test to determine if a company is a Sifi is if it has $50 billion in assets," Paul Hastings partner Lawrence Kaplan said. Non-bank financial institutions with less than $50 billion in assets do not move onto the second test – which includes alternatives outlined below –...