The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Schott Stevens Shouts a Battle Cry Not Rated 0.0 Email Routing List Email & Route  Print Print
Monday, March 17, 2014

Schott Stevens Shouts a Battle Cry

Reported by Tommy Fernandez

Sounds the charge.

ICI president and chief executive Paul Schott Steven issued a battle cry today during his introductory remarks at the ICI Mutual Funds and Investment Management Conference being hosted this week at the JW Marriott Grande Lakes Resort Orlando.

His comments were directed at the growing possibility that U.S. and international regulators may target asset managers for bolstered systemic risk regulation, in particular the 20 largest asset managers targeted as "systemically important financial institutions," or SIFIs, in a report recently released by the Treasury Department's Office of Financial Research.

Schott Stevens warned that any regulatory hammer leveled at the biggest 20 would inevitably start hitting the rest of the industry.

If regulators ultimately decide that certain funds or asset managers should face enhanced prudential regulation, the consequences will reach far beyond the 20 largest managers listed in the U.S. report...

The ICI chief then, painstakingly, started to pick at the argument that fund firms should be considered SIFIs.

His full argument can be found in this ICI copy of his speech as well as the copies of the slides he used to punctuate his argument.

He summed up his argument in this way:

  • First, mutual funds make little use of leverage -- the essential fuel of financial crises.
  • Second, mutual funds simply do not "fail" the way banks and insurance companies do.
  • Third, the specific risks that the OFR Report hypothesizes have no factual predicate.
  • And finally, the structure and comprehensive regulation of mutual funds and their managers not only protect investors, but limit systemic risks and risk transmission.

  • After comprehensively articulating these and other arguments, Schott Stevens then called upon fundsters to raise their voices.

    So let me end with a request. If you are concerned about the implications of these regulatory initiatives -- speak up.

    If you have information or experience from your funds that can bolster our arguments -- speak up.

    If you can provide perspectives that will help regulators understand the asset management business and the comprehensive regulation of funds -- speak up.

    The Conference will last through Wednesday. 

    Stay ahead of the news ... Sign up for our email alerts now

     Do You Recommend This Story?

    GO TO: MFWire
    Return to Top
     News Archives
    2021: Q1
    2020: Q4Q3Q2Q1
    2019: Q4Q3Q2Q1
    2018: Q4Q3Q2Q1
    2017: Q4Q3Q2Q1
    2016: Q4Q3Q2Q1
    2015: Q4Q3Q2Q1
    2014: Q4Q3Q2Q1
    2013: Q4Q3Q2Q1
    2012: Q4Q3Q2Q1
    2011: Q4Q3Q2Q1
    2010: Q4Q3Q2Q1
    2009: Q4Q3Q2Q1
    2008: Q4Q3Q2Q1
    2007: Q4Q3Q2Q1
    2006: Q4Q3Q2Q1
    2005: Q4Q3Q2Q1
    2004: Q4Q3Q2Q1
    2003: Q4Q3Q2Q1
    2002: Q4Q3Q2Q1
     Subscribe via RSS:
    Raw XML
    Add to My Yahoo!
    follow us in feedly

    1. MFDF webinar - ESG, Proxy Voting and Engagement — Where DOL and SEC Regulation has Been and Where it May be Going, February 25
    2. IDC Foundations for Fund Directors, Mar 1-2
    3. MFDF webinar - Board Oversight of ETFs, March 3
    4. FinReg Outlook 2021, March 10
    5. MFDF Director Discussion Series - Open Forum via Zoom (Midwest), March 10
    6. Irish Funds North American Digital Seminar, March 11
    7. MFDF webinar - Municipal and Taxable Fixed Income — A Multi-Speed Recovery, March 12
    8. 2021 Virtual Mutual Funds and Investment Management Conference, Mar 15-19
    9. SEC & DOL Standard of Conduct Rulemakings — Present & Future Considerations, March 23
    10. MFDF Director Discussion Series - Open Forum via Zoom, March 24
    11. ETFGI Global ETFs Insights Summit - ESG & Active ETF Trends, Mar 24-25
    12. MFDF webinar - Asset Management M&A for Fund Directors — Recent Trends and Governance Issues, March 31
    13. MFDF Director Discussion Series - Open Forum via Zoom, April 7
    14. MFDF In Focus: Board Oversight of Sub-advisers, April 15
    15. ETF.com Awards 2020, April 20
    16. The 31st Sub-Advised Funds Forum, Apr 20-21
    17. MFDF Director Discussion Series - Open Forum via Zoom (Northeast), April 21
    18. FIASI virtual event - ESG in Fixed Income: Shining a Light on Transparency, Apr 22-23
    19. 44th Annual AIMSE Marketing & Sales Conference, May 2-4
    20. MFDF Director Discussion Series - Open Forum via Zoom (Southeast), May 5
    21. ICI 2021 General Membership Meeting - Day 1, May 6
    22. ICI 2021 General Membership Meeting - Day 2, May 13
    23. 2021 FINRA Annual Conference, May 18-20
    24. MFDF Director Discussion Series - Open Forum via Zoom, May 19
    25. 2nd annual ETFGI Global ETFs Insights Summit - USA, May 19-20
    26. Irish Funds Online Annual Global Funds Conference 2021, May 19-20

    ©All rights reserved to InvestmentWires, Inc. 1997-2021
    14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
    Privacy Policy :: Terms of Use