The U.S. Securities and Exchange Commission (SEC) is consideringan increase in its oversight of the risk posed by large assetmanagers such as BlackRock Inc.
|The agency's staff is drafting a plan to expand its stresstesting of money-market funds (MMFs) and require more robustreporting of data, SEC Chairman Mary Jo White said in a speechtoday in Washington. The effort draws on the work of formerportfolio managers and investment analysts who now work at the SEC,White told a conference sponsored by the Practicing LawInstitute.
|A study issued last year by Treasury's Office of FinancialResearch said money managers could endanger the financial systemwhen reaching for higher returns, herding into popular assetclasses, or amplifying price movements with leverage. White toldthe Senate Banking Committee this month that the SEC “agreed todisagree” with Treasury economists on some of the study'sfindings.
|“The SEC of 2014 is an agency that increasingly relies ontechnology and specialized expertise,” White said today. “This isparticularly evident in the SEC's new risk monitoring and dataanalytics activities. One important example is the SEC's newfocus on risk monitoring of asset managers and funds.”
|Copyright 2018 Bloomberg. All rightsreserved. This material may not be published, broadcast, rewritten,or redistributed.
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