Regulators Consider Plans To Unwind Asset Managers

The derivatives are increasingly finding their way in to the portfolios of non-bank asset managers, it causes concern for regulators.

How asset managers should properly unwind

As concerns regarding derivatives and managing such asset managers during crisis is the subject of a white paper from Federal Financial Analytics on addressing these issues titled "The Future of Asset Management: New Systemic Standards and Their Strategic Impact."

The paper considers how certain asset managers should properly unwind “ensuring orderly resolution under stress at a firm.” In other words, if a fund manager were to implode there should be methods to dismantle the positions, or defuse the time...