Washington, D.C., April 21, 2023 –  SIFMA today issued the following statement from SIFMA’s Asset Management Group (SIFMA AMG) regarding changes to guidance on nonbank financial company designations proposed today by the Financial Stability Oversight Council (FSOC):

“SIFMA AMG has long advocated a shift away from focusing on designating asset managers as systemically important given the agency-nature of the business-model. Asset managers are directed by investor clients, generally do not hold custody of assets and, therefore, have small balance sheets.

“Upon initial review, the removal of language requiring consideration of an activities-based approach prior to a firm’s designation, as well as the elimination of the cost-benefit analysis and an assessment of the likelihood of a firm’s material distress is concerning.  We look forward to commenting after further examining the proposal.”

-30-

SIFMA is the leading trade association for broker-dealers, investment banks and asset managers operating in the U.S. and global capital markets. On behalf of our industry’s nearly 1 million employees, we advocate for legislation, regulation and business policy, affecting retail and institutional investors, equity and fixed income markets and related products and services. We serve as an industry coordinating body to promote fair and orderly markets, informed regulatory compliance, and efficient market operations and resiliency. We also provide a forum for industry policy and professional development. SIFMA, with offices in New York and Washington, D.C., is the U.S. regional member of the Global Financial Markets Association (GFMA). For more information, visit http://www.sifma.org.