Regulators set to scrutinise 'too big to fail' asset managers

Some of the UK's largest asset managers could face more onerous financial requirements after regulators unveiled proposals to subject fund giants to greater scrutiny.

Having already taken action on banks and insurers, the Financial Stability Board (FSB) and the International Organisation of Securities Commissions (IOSCO) said it is now looking to compile a list of asset managers whose distress or failure could cause a Lehman-style event. Asset managers with more than $100bn (£61bn) under management would be considered 'systemically important financial institutions' (SIFIs), under the plans suggested by the FSB and IOSCO in a consultation paper this week. The FSB said in the paper the institutions, because of their size, complexity and systemic inte...