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 –...