Washington, D.C. — MFA issued the following statement supporting the FSOC Improvement Act, introduced by Senators Mike Rounds (R-SD) and Gary Peters (D-MI). The legislation ensures the Financial Stability Oversight Council (FSOC) will only designate nonbank financial firms as systemically important financial institutions (SIFIs) as a last resort—after thoroughly assessing whether targeted regulatory actions could address financial stability risks. Parallel bipartisan legislation is also advancing in the House.
“MFA supports the Senate’s introduction of commonsense, bipartisan legislation to bring transparency and accountability to the FSOC designation process. The bill will require FSOC to first consider targeted regulatory alternatives to address activities creating potential stability risks before turning to misguided and potentially damaging designations. This much-needed clarity will strengthen market stability and reduce uncertainty for investors, including pensions, foundations, and endowments.” — 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.
