US attorneys have called on the Financial Stability Oversight Council (FSOC) to exempt asset management companies from being designated as systemically important financial institutions (Sifis).
The Fsoc approved its final rule and interpretive guidance
regarding non-bank Sifi designation on April 3. The proposed definition of covered financial activities includes investment advisers and fund managers, meaning asset management companies that only advise on client funds would fall within the pool of non-bank financial companies vulnerable to Sifi status.
Debevoise & Plimpton partner Gregory Lyons said it is unnecessary to designate these types of entities as Sifis.
It certainly doesnt make a lot of sense...
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