Washington, D.C. — MFA President and CEO Bryan Corbett issued the following statement in support of the Financial Stability Oversight Council Improvement Act, introduced by Representatives Bill Foster (D-IL) and Bill Huizenga (R-MI). The bipartisan legislation would ensure the Financial Stability Oversight Council (FSOC) thoroughly evaluates whether alternative actions could address potential risks to financial stability before designating nonbank financial companies as systemically important financial institutions (SIFIs):
“This bill strikes the right balance between oversight and financial stability. Alternative asset managers do not pose a systemic risk and are already subject to a robust SEC regulatory regime. Requiring FSOC to first consider appropriate alternatives before designating a firm as systemically important is a commonsense check on overreaching regulation. It will bring accountability and transparency to the designation process, preserve market diversity, and protect the ability of managers to serve institutional investors like pensions, endowments, and foundations.” — Bryan Corbett, MFA President and CEO
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About the global alternative asset management industry
The global alternative asset management industry — including hedge funds, private credit funds, and hybrid funds — serves thousands of public and private pension funds, charitable endowments, foundations, and other global institutional investors. The industry provides portfolio diversification and risk-adjusted returns to help meet their funding obligations and return targets throughout the economic cycle.
About MFA
Managed Funds Association (MFA), based in Washington, D.C., New York City, Brussels, and London, represents the global alternative asset management industry. MFA’s mission is to advance the ability of alternative asset managers to raise capital, invest it, and generate returns for their beneficiaries. MFA advocates on behalf of its membership and convenes stakeholders to address global regulatory, operational, and business issues. MFA has more than 180 fund manager members, including traditional hedge funds, private credit funds, and hybrid funds, that employ a diverse set of investment strategies. Member firms help pension plans, university endowments, charitable foundations, and other institutional investors diversify their investments, manage risk, and generate attractive returns throughout the economic cycle.
