Asset managers at risk of being mislabelled as shadow banks

Michael Bow
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ASSET management firms risk tighter regulation if they are mis-labelled as shadow banks by government, an influential trade body has warned.

The International Capital Market Association says the industry must be wary it is not tagged as part of the shadow banking industry – non-deposit taking financial intermediaries which resemble commercial banks.

Bank deleveraging has caused a wave of commercial bank assets – such as real estate and infrastructure – to be transferred to asset managers over the past two years.

ICMA chairman Bob Parker told the groups’ annual meeting: “What the asset management industry needs to laser in on is shadow banking. We don’t want asset managers to be labelled as shadow banks.”