Separate Accounts Do Not Pose Systemic Risk

This fact sheet highlights the results of a SIFMA AMG survey that shows separate accounts do not present systemic risk.

Policymakers have indicated that more information is needed to assess if separate accounts pose a threat to financial stability. The OFR Study on Asset Management and Financial Stability specifically cited data gaps related to separate accounts and their leverage practices and risk exposures; a consultative document published by the FSB and IOSCO on G-SIFI designation referenced separate accounts as an area for further research; and recent testimony from OFR director Richard Berner suggested risk-taking in separate accounts could give rise to threats to financial stability.

Related: Full Survey Results and SIFMA AMG Submits Comments to the FSB on Assessment Methodologies for Identifying Non-Bank Non-Insurer G-SIFIs  (April 4, 2014)