Financial Stability Content

July 27, 2023: ICI President and CEO Eric Pan released the following statement on the Financial Stability Oversight Council’s (FSOC) proposals to develop an analytic framework for financial stability risk identification and change the process to designate a non-bank as a systemically...

In this letter, we highlight serious concerns with the Council’s approach. As compared with the Current Guidance, the Proposals take a step backward in terms of the rigor required of FSOC’s analyses of perceived risks to financial stability and appear to lower the bar for Council...

In a recent ICI Viewpoints, we promised to briefly revisit some of the concerns we’ve long voiced about the theoretical underpinnings of the first-mover hypothesis. That is, the notion that fund investors may redeem en masse during market downturns to avoid the possibility of other...

Policymakers are laser-focused on a concept in open-ended funds called dilution, suggesting that it poses financial stability risks. In a nutshell, dilution occurs when fund shareholders redeem and the transaction costs of meeting those redemptions—such as bid-ask spreads or the...

ICI was honored to host the Chair of the Securities and Exchange Commission, Gary Gensler, at our annual Leadership Summit and to hear from him about his priorities. Appearing virtually, Gensler spoke at length about financial stability and his agenda regarding open-end funds. However...