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Systemic Risk in Asset Management

Standard-Setting
Last Update 03/01/21

The project will evaluate the Systemic Risk Management topic in the Asset Management & Custody Activities industry standard, including potential improvements to the scope of the topic and the associated accounting metrics.

Sector

Financials

Issues

Risk

Project Status

Exposure Draft Development

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Project Overview

Project Objective

The project will evaluate the Systemic Risk Management topic in the Asset Management & Custody Activities industry standard, including potential improvements to the scope of the topic and the associated accounting metrics.

Project Background

Two out of four accounting metrics under the Systemic Risk Management topic in the Asset Management & Custody Activities industry standard may no longer satisfy three of the criteria for metric selection as specified in the SASB Conceptual Framework: fair representation, usefulness, and alignment. Additionally, changing product trends within the industry that are not currently captured by the standard may contribute to, or result in, exposure to systemic risk. Therefore, the current content of the standard is not adequately measuring performance on the topic and does not provide decision-useful information to investors. For more project background, please read our call for feedback.


Project Status

  • Phase 1 - Initial Research
  • Phase 2 - Stakeholder Consultation
  • Phase 3 - Post-Consultation Analysis
  • Phase 4 - Exposure Draft Development
  • Phase 5 - Public Comment Period
  • Phase 6 - Standards Board Deliberations
  • Phase 7 - Completed

Current Status

Company and investor consultations

Next Steps

Exposure Draft Public Comment Period


Published Documents & Supplemental Materials

Published Documents

There are no public documents or drafts at this time.

Supplemental Materials


Board Materials & Decisions

Board Meeting Outcomes

December 2019

  • The Board unanimously agreed to add a project on Systemic Risk in Asset Management to its standard setting agenda.

June 2020

  • The Board made a preliminary decision to remove accounting metric FN-AC-550a.1 from the Asset Management & Custody Activities Standard, which calls for a breakdown of open-end fund assets by liquidity category.

Board Materials

For a full list of past and upcoming Standards Board meetings, as well as associated materials, please visit our Board Meetings Calendar & Archive.


The staff has prepared this summary for informational purposes only. Any Standards Board decisions are tentative and do not change current accounting. Official positions of SASB are determined only after extensive due process and deliberations.