Home Financial Stability Resource Center
The fund industry plays an important role in Americans’ saving and money management, managing more than $18 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
- Yes, Funds Come and Go—Without Government HelpMar 11, 2016
- The “Waterfall Theory” of Liquidity Management Doesn’t Hold WaterMar 9, 2016
- Models vs. the Real World—Why Bond Funds Aren’t the Bond MarketFeb 25, 2016
- MetLife Case Shows That “Assuming the Worst of the Worst of the Worst” Doesn’t WorkFeb 24, 2016
- New Research by New York Fed Confirms: Bond Funds Don’t Pose Systemic RisksFeb 23, 2016
- ICI Responds to FSOC Report
Apr 18, 2016
- House Committee Passes Critical Changes to SIFI Designation Process
Nov 4, 2015
- ICI Statement on FSB Postponing Work on Asset Management SIFI Designation Methods
Jul 30, 2015
- FSB Has No Basis in Data, Analysis for Targeting U.S. Funds, Asset Managers in Flawed G-SIFI Designation Process: ICI
Jun 1, 2015
- ICI Provides Detailed Empirical Analysis to Rebut FSOC’s ‘Systemic Risk’ Theories for Regulated Funds
Mar 25, 2015
Speeches and Statements
- ICI Letter Supporting H.R. 1550, the Financial Stability Oversight Council Improvement Act (pdf)
Oct 30, 2015
- Oral Testimony for Senate Hearing: "The Role of the Financial Stability Board in the U.S. Regulatory Framework"
Jul 8, 2015
- ICI Statement for Senate Hearing: "The Role of the Financial Stability Board in the U.S. Regulatory Framework" (pdf)
Jul 8, 2015
- ICI Letter to Secretary Lew, Chair Yellen, and Chair White Expressing Concern About the FSB's Consultation (pdf)
May 28, 2015
- A Strong Footing: The Critical Role of Capital Markets in the Post-Crisis World
Apr 21, 2015