Regulators are considering compiling a list of the largest asset managers worldwide which could threaten the global financial system in the event of their collapse.
Having already taken action on banks and insurers, the Financial Stability Board (FSB) and the International Organisation of Securities Commissions (IOSCO) said it is now looking to compile a list of asset managers whose distress or failure could cause a Lehman-style event. Known as 'systemically important financial institutions' (SIFIs), the FSB said in a paper that the institutions, because of their size, complexity and systemic interconnectedness, would cause significant disruption to the wider financial system and economic activity if they were to fail in a disorderly manner. The ...
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