FSOC Meeting Focuses on Hedge Funds, Mutual Funds, Impact of Climate Change on Financial Stability
April 9, 2021
The Financial Stability Oversight Council’s (FSOC’s) first meeting of the year – and of the new Administration – focused on hedge funds, mutual funds, and climate change.
Following a discussion of the activities of hedge funds during the period of market volatility in March 2020 and recent market developments, Treasury Secretary Janet Yellen, who chairs FSOC, announced that FSOC’s Hedge Fund Working Group will reconvene to enhance data sharing among agencies and to improve FSOC’s “ability to identify, assess, and address potential risks to financial stability related to hedge funds.”
SEC staff also provided an update on mutual fund performance, outflows, and liquidity risk management during the COVID-19 crisis. Yellen asked staff to “assess potential financial stability risks” associated with mutual funds, with a focus on liquidity risks.
The open session of the meeting included a presentation by Federal Reserve Board staff on climate change and its potential impact on financial stability and a discussion of actions by the FSOC agencies to address climate change risks.
See Readout of Financial Stability Oversight Council Meeting on March 31, 2021.
TAGS: Coronavirus, COVID-19, Climate, ESG, Financial Stability, FSOC, Hedge Funds, Mutual Funds, Systemic Risk