Nov. 6 (Bloomberg) — A panel of regulators is taking a first step to focus on risky practices of the asset management industry rather than singling out firms such as BlackRock Inc. and Fidelity Investments for stricter oversight.
The Financial Stability Oversight Council is planning to solicit views from the industry and the public on which asset management activities could threaten the financial system, according to two people with knowledge of the matter.
The request marks a new approach by the council, led by Treasury Secretary Jacob J. Lew, to examine areas such as investments in hard-to-sell assets instead of deeming the companies systemically important. It's also the strongest sign yet that a four-year lobbying campaign by the largest asset managers to avoid heightened federal scrutiny is succeeding.
Staffers from agencies that make up the council, including the Treasury Department, Federal Reserve, Securities and Exchange Commission and Federal Deposit Insurance Corp., have been working on the request for comment, said the people, who asked not to be identified because the information isn't public. The solicitation could be published in the Federal Register in the next few months, they said.
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