ICI Criticizes U.S. Treasury – OFR Study on the Asset Management Industry

November 4, 2013

The ICI, the trade group for the investment company industry, in a letter to the SEC criticized a recent report entitled “Asset Management and Financial Stability” on the asset management industry issued by the U.S. Treasury Department’s Office of Financial Research (OFR) .  The ICI stated that the study speculates about potential vulnerabilities for asset managers that the OFR study claims could pose a threat to financial stability. In the ICI’s view, the study failed to provide data or historical experience to support its claims. In its letter, the ICI focused primarily on registered funds and their advisers, offers detailed analysis of mutual fund and investor behavior during periods of market stress from 1945 through 2008. The ICI asserted that contrary to the OFR study’s suggestions investors in mutual funds do not redeem precipitously during financial market shocks.
Click here for the ICI letter.
Click here to access the study.


Categories

Investment Advisers, Investment Companies