Office of Financial Research (OFR) has completed its review of asset management to identify potential systemic risk that could lead FSOC to designate firms in this sector as systemic nonbanks requiring FRB regulation. Based on this research, the Securities and Exchange Commission has solicited views on the paper’s conclusions to guide potential action while FSOC considers a report that could lead to systemic designation of some asset managers and/or of certain activities they conduct. Activities conducted by large banks, especially securities financing, are also subjected here to systemic-risk scrutiny, with the OFR calling for SEC action on new disclosure standards among other possible reforms.

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