‘Too-big-to-fail asset’ managers slam plans for tougher regulation

Global regulators face a backlash from some of the world’s largest asset managers over plans that could single them out for tougher regulation.

Draft proposals for identifying financial institutions other than banks and insurers that are considered too-big-to-fail are based on an incorrect analysis of the investment-fund industry, companies including Pacific Investment Management, Fidelity Investments, and BlackRock, said in written responses to a consultation by international standard setters.

The blueprint “is fundamentally flawed and should be withdrawn,” Pimco said in its consultation response, published on the International Organisation of Securities Commissions website.