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Systemic Risk in Asset Management

Standard-Setting
Last Update 06/15/21

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

Public Comment Analysis

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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 - Public Comment Analysis
  • Phase 7 - Completed

Current Status

The Systemic Risk in Asset Management public comment period concluded on June 15, 2021. All received comment letters are published in the Published Documents & Supplemental Materials section below. The SASB Standards Board is currently reviewing and considering all received comment letters.

Next Steps

The Standards Board may vote to proceed with the proposed changes, re-evaluate the proposed changes, or consider additional alternatives based on review and deliberation of the received comment letters. Subscribe to Project Updates to receive the latest information on this project.


Published Documents & Supplemental Materials

Published Documents

Supplemental Materials

Comment Letters

Comment letters are received as part of the public comment period between March 16, 2021 and June 15, 2021. Comment letters are posted in the order of receipt. Please note that it can take up to two weeks for comment letters to be posted.


Board Materials & Decisions

Board Meeting Outcomes

December 2020

  • Staff presented preliminary conclusions from research and stakeholder consultation.
  • Staff articulated two recommendations it is considering—the potential removal of the existing disclosure topic and the assessment of a new disclosure topic. The Board discussed the merits of these recommendations and the implications for the existing project. General agreement was expressed by the Board with some specific concerns cited.
  •  Next steps in the project include continued discussions with Board members and the potential development of an exposure draft for public comment.

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.

December 2019

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

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.