INTERNATIONAL: Consultation on G-SIFI Designation for Investment Funds and Asset Managers

Monday March 9 2015

On 4th March 2015, the Financial Stability Board (FSB) and the International Organization of Securities Commissions (IOSCO) published a second public consultation on Assessment Methodologies for Identifying Non-Bank Non-Insurer (NBNI) Global Systemically Important Financial Institutions (G-SIFIs).

The proposed methodologies outlined in the consultation aim to identify NBNI financial entities whose distress or disorderly failure, because of their size, complexity and systemic interconnectedness, would cause significant disruption to the wider financial system and economic activity at the global level. These methodologies comprise a high-level framework and an operational framework for identifying G-SIFIs that would apply across NBNI financial entities, as well as detailed NBNI sector-specific methodologies.

Detailed sector-specific methodologies include:

(a) near-final methodologies for finance companies and market intermediaries; and

(b) a revised proposal on sector-specific methodologies for asset management entities. The latter comprises a revised methodology for investment funds (including hedge funds) and a new proposed methodology for asset managers.

The FSB and IOSCO welcome comments on this document. Comments should be submitted by 29 May 2015 by email to fsb@bis.org or post. All comments will be shared with IOSCO.

Click on the above link for further details.