WASHINGTON Nov 5 U.S. regulators will review
whether asset managers including BlackRock Inc. and
Fidelity Investments pose a potential risk to the financial
system, Bloomberg News reported late Tuesday.
The decision by the Financial Stability Oversight Council to
review the two firms does not mean it will necessarily designate
them as systemically important, the newswire said.
The review follows a study the U.S. Treasury Department
released in September that said some activities of asset
managers could pose risks to the broader marketplace.
The FSOC, which called for the study, has been contemplating
whether certain large, complex asset management firms should be
designated as "systemically important financial institutions."
Last week the group held "an initial discussion" on the
Any firms given the systemic tag will face new capital
requirements and oversight by the Federal Reserve in addition to
any current regulations.
The FSOC is a council of regulators chaired by Treasury
Secretary Jack Lew and comprised of the country's top financial
A Treasury Department representative declined comment.
"We believe that the asset management industry, and mutual
funds in particular, do not present the types of risk that the
FSOC was designed to address," Fidelity spokesman Vincent
BlackRock did not immediately respond to a request for