Regulatory & Compliance | 11.08.23

U.S. Regulators Agree To Ramp Up Oversight of Systemically Important Non-banks

by: Pete Schroeder

The U.S. Financial Stability Oversight Council (FSOC) cleared the way to increase oversight of asset managers and other non-bank financial institutions that they believe pose risks to the financial system. The FSOC also adopted a new framework for identifying looming risks in the financial system in an effort to make the council's work more transparent. While FSOC has not named any potential non-bank SIFIs, or systemically important financial institutions, it is expected to focus on major global asset managers and hedge funds, such as BlackRock and Bridgewater, potentially subjecting them to U.S. Federal Reserve oversight and heightened capital and liquidity requirements.

Read the full article on Reuters