The Securities and Exchange Commission is in the early states of creating new rules to monitor the risk that mutual funds and hedge funds pose to the larger economy in the event of a market shock, according to the Wall Street Journal.
Specifically, fund companies such as Fidelity and BlackRock will be subject to stress tests to determine how their funds would react to a sudden rise in interest rates.
The Financial Stability Oversight Council recently announced that it will not tag Fidelity and BlackRock as Systemically Important Financial Institutions, as it had been considering.
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Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
