By Andrew Ackerman
WASHINGTON--The Securities and Exchange Commission on Wednesday
took the first in a series of steps aimed at giving regulators a
better handle on risk in the $60 trillion asset-management
industry.
The SEC voted 5-0 to significantly boost the volume of data the
agency collects from the industry, requiring mutual-fund firms such
as Fidelity Investments and BlackRock Inc. to give regulators and
the public more detailed and frequent information about the assets
in their funds. The proposal includes requirements that funds
report on potentially risky derivatives products, data that isn't
regularly or consistently captured under existing, dated SEC
reporting requirements.
The rules come amid a debate in Washington about whether the
asset-management industry is vulnerable to stresses, such as
widespread investor redemptions, that could roil markets and
destabilize the financial system.
Write to Andrew Ackerman at andrew.ackerman@wsj.com
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