FSB buy-side plans a 'step forward', says industry group

Investment Association welcomes suggestions to regulate illiquid and levered funds

image of coins being weighed

Industry groups have greeted the Financial Stability Board's proposals to address the systemic risk of asset management with relief, with the UK's Investment Association saying they represent a "considerable step forward" from plans to designate big asset managers as systemically important. The FSB put forward 14 recommendations for global regulators in a June 22 paper, focusing on the risks of liquid funds investing in illiquid assets and of high fund leverage. It urges more disclosure and g