WASHINGTON, D.C. — Today, in response to the Federal Stability Oversight Council (FSOC) adopting a Risk Analytic Framework and Nonbank Designation Guidance, Managed Funds Association (MFA) issued the following statement from its President and CEO, Bryan Corbett:
“Alternative asset managers do not pose a systemic risk and are already subject to the SEC’s robust regulatory regime. FSOC’s adoption of the flawed Guidance will hurt financial stability. SIFI designation for alternative asset managers is inappropriate — as they do not carry the same risks as banks — and will do nothing to curtail systemic risk in the market. The Guidance imposes a black box designation process that introduces uncertainty for market participants, harming their ability to deliver for their investors, including pensions, foundations, and endowments. For the health of the U.S. capital markets FSOC should set aside its entity designation focus and continue to work with primary regulators to address risk.” — Bryan Corbett, MFA President and CEO
About the Global Alternative Asset Management Industry
The global alternative asset management industry, including hedge funds, credit funds, and crossover funds, has assets under management of $5.5 trillion (Q3 2023). The industry serves thousands of public and private pension funds, charitable endowments, foundations, sovereign governments, and other global institutional investors by providing portfolio diversification and risk-adjusted returns to help meet their funding obligations and return targets.
About Managed Funds Association
Managed Funds Association (MFA), based in Washington, DC, New York, Brussels, and London, represents the global alternative asset management industry. MFA’s mission is to advance the ability of alternative asset managers to raise capital, invest, and generate returns for their beneficiaries. MFA advocates on behalf of its membership and convenes stakeholders to address global regulatory, operational, and business issues. MFA has more than 170 member firms, including traditional hedge funds, credit funds, and crossover funds, that collectively manage nearly $3 trillion across a diverse group of investment strategies. Member firms help pension plans, university endowments, charitable foundations, and other institutional investors to diversify their investments, manage risk, and generate attractive returns over time.