Council Adopts a "Wait and See" Attitude
In an apparent reaction to strong criticism from legislators, asset management industry groups, and even the Securities and Exchange Commission, the Financial Stability Oversight Counsel (FSOC) has indicated that it may encourage stronger regulation of the asset management industry, rather than designating certain industry participants as SIFIs. In the FSOC's press release for its July 31, 2014 meeting, the Council indicated that it was encouraged by the new money market rules finalized by the SEC one week prior, and would take a step back to observe their effectiveness before moving forward with implementation of SIFI designations for asset managers and mutual fund groups.