FCA's Wheatley backs fund groups over systemic risk claims

Financial Conduct Authority chief Martin Wheatley has supported the asset management industry's claim that it does not pose a threat to financial stability.

The industry has come under the spotlight in recent months following proposals from global regulator the Financial Stability Board which would designate large asset management firms as critical to market stability. Finalised proposals could result in the world's largest fund groups being subject to tougher controls, increased scrutiny from regulators and additional liquidity requirements. But FCA chief executive Wheatley, speaking to the FT, said it is markets themselves which are the issue rather than asset managers. He said: "My view is that it is not the players that are systemi...