Home Financial Stability Resource Center
The fund industry plays an important role in Americans’ saving and money management, managing more than $17 trillion through mutual funds, exchange-traded funds, closed-end funds, and unit investment trusts.
Asset management is an agency business—that is, such firms manage, but do not own, the assets that they invest on behalf of funds or other clients. This means that though asset managers generally decide where and how to invest assets on behalf of their investors, any profits or losses belong to the investors, not the manager. This is just one important distinction that policymakers and the public should understand as regulators discuss systemic risk and consider imposing new regulations on asset managers that could ultimately be paid for by fund investors.
Among those regulators is the Financial Stability Oversight Council (FSOC), which is charged with identifying and monitoring potential risks posed by “large, interconnected bank holding companies or nonbank financial companies” to the U.S. financial system. As part of that mission, FSOC has been examining the asset management industry to determine if—and, if so, how—any asset management firms should be designated as systemically important financial institutions (SIFIs). If designated as SIFIs, such firms would be subject to enhanced supervision and bank-style regulation, as required by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.
ICI and its members remain committed to the promotion of financial stability; to sensible, deliberate, and data-driven regulation; and to advancing the public understanding of mutual funds. This resource center contains the latest news, analysis, and resources from ICI and others on the regulatory developments around financial stability and the asset management industry.
ICI Viewpoints Blog
- Designation’s Vast Reach into Investor PortfoliosMar 24, 2015
- Once Again, Information Moves MarketsMar 18, 2015
- Why Long-Term Fund Flows Aren’t a Systemic Risk: Multi-Sector Review Shows the Same ResultMar 4, 2015
- Simple Answers to the Federal Reserve’s QuandariesFeb 24, 2015
- Why Long-Term Fund Flows Aren’t a Systemic Risk: Understanding the Data on Institutional and Retail InvestorsFeb 20, 2015
- ICI Provides Detailed Empirical Analysis to Rebut FSOC’s ‘Systemic Risk’ Theories for Regulated Funds
Mar 25, 2015
- ICI Statement on Financial Stability Board Consultation to Examine Investment Funds and Asset Managers
Mar 4, 2015
- ICI Comments on Financial Stability Oversight Council’s Changes to Designation Process
Feb 5, 2015
- ICI Statement on FSOC Request for Comment on Asset Management and Financial Stability
Dec 18, 2014
- ICI Statement on SEC Chair White’s Speech on Asset Management Regulation
Dec 11, 2014
Speeches and Statements
- A Strong Footing: The Critical Role of Capital Markets in the Post-Crisis World
Apr 21, 2015
- Oral Testimony for Senate Hearing: "FSOC Accountability: Nonbank Designations"
Mar 25, 2015
- ICI Statement for Senate Hearing on "FSOC Accountability: Nonbank Designations" (pdf)
Mar 25, 2015
- The Modern Fund Industry at 75
Mar 16, 2015
- Financial Stability and Asset Management: What’s at Stake?
Mar 10, 2015