Week InReview | IOSCO to reassess planned asset manager rules | FSOC will disclose SIFI designation process | OECD compares finance sector to chocolate | MSRB boosts disclosure for municipal securities investors | Binge reading disorder
Friday, June 19, 2015
IOSCO to reassess planned asset manager rules
Review takes precedence over identifying SIFIs
(Jun 17) The International Organization of Securities Commissions, one of two global standard-setters working on plans to label asset managers as systemically important, will now give priority to a "broader" study of asset manager activities. After the review is completed, work on methodologies for the identification of such entities should be reassessed, IOSCO said in a statement during its annual conference in London. They also announced plans to set up a global task force on financial conduct, and to examine the impact of reduced liquidity on bond markets.
FSOC to disclose SIFI designation process
Will include analyses of risks that lead to rulings
(Jun 16) In a letter to lawmakers who requested non-public Financial Stability Oversight Council documents, the Treasury said they will disclose more that 1,400 pages of documents that explain why some nonbank financial companies are subject to tougher oversight. They will include 'specific analyses of the potential risks' such as leverage, interconnectedness and size that FSOC considered before making its rulings. In February, the council agreed to tell companies sooner that they are being considered for systemic risk status, and that it will increase communication with companies that have already been designated and are due for annual re-evaluation.
OECD compares finance sector to chocolate
Good for economic growth, but you can have too much of it
(Jun 17) In their report "Finance and Inclusive Growth" the Organization for Economic Cooperation and Development said an outsized financial industry hurts long-term growth and increases inequality. "Finance is a vital ingredient of economic growth, but there can be too much of it," according to the OECD publication. "Reforms to make the financial sector more stable can be expected to boost long-term economic growth and improve income equality." The report follows a February Bank for International Settlements study that found a finance industry boom doesn't translate into economic growth because it diverts resources from other companies. 
MSRB boosts disclosure for municipal securities
EMMA website gives investors 'security details'
(Jun 16) Investors and others now will be able to access the full universe of disclosure information available for a municipal security in cases where new identification - CUSIP - numbers are assigned to portions of the bond after issuance. The Municipal Securities Rulemaking Board Electronic Municipal Market Access (EMMA) website has a new feature that links a municipal bond to any new CUSIPs assigned to portions of that bond. To find the disclosures, go to EMMA's 'Security Details' for a bond and click the 'Related Securities' tab to find links to any new - or former - CUSIPs that may share disclosure information.
Binge reading disorder
Hand-curated, chosen with love
  • Billionaire Bunkers: Exclusive Look Inside the World's Largest Planned Doomsday Escape (Forbes)
  • A Coffee Addict's Guide to the Universe (WonkBlog)
  • What Happens to Stolen Art After a Heist? (Bloomberg)
  • Confirmation Bias: How Intelligent People Develop Totally Incorrect Beliefs (PsyBlog)
  • 25 Things I Wish I Knew When I Graduated from High School (MarketWatch)
Transparency.
Inclusiveness.
Consensus.