Effort to label asset managers as SIFIs falling flat

|By:, SA News Editor

The lobbying efforts from the likes of Fidelity and BlackRock (BLK -0.6%) look to be paying off as the SEC forcefully pushes back against an office inside Treasury which is trying to lay the groundwork to designate the country's large asset managers as systemically important.

"Notorious," was a word SEC Commission Daniel Gallagher used to describe the initial report from the Office of Financial Research.

Like the asset managers themselves, SEC officials say the report understates the level of regulation already faced by the companies, and doesn't recognize that any losses come within the funds themselves, and are borne by shareholders, not the managers.

The head of the OFR heads to Capital Hill on Wednesday to face the Senate Banking Committee and several Senators have already written letters to Treasury chief Jack Lew criticizing the report.