US regulator to introduce new rules for ‘shadow banking’

Asset managers will have to make unprecedented disclosures about their so-called “shadow banking” activities as part of new reporting rules proposed by the US regulator.

Concerns that the asset management industry could pose the next threat to stability has prompted a drive for greater supervision that is being resisted strongly by investment managers.

The Securities and Exchange Commission last week tabled plans for a vast increase in data reporting that will require US-registered funds to provide monthly data on securities lending activities, repurchase agreements and counterparty exposures. It also wants mutual funds and exchange traded funds to publish more details about derivative positions. – (Copyright The Financial Times Limited 2015)