The Systemic Risk of Private Funds after the Dodd-Frank Act
Wulf A. Kaal · 2014
The Financial Stability Oversight Council (FSOC) was created under the Dodd- Frank Act with the primary mandate of guarding against systemic risk and correcting perceived regulatory weaknesses that may have contributed to the financial crisis of 2008-09. The SEC collects data pertaining to private fund advisers in order to facilitate the FSOC’s assessment of non-bank financial institutions’ potential systemic risks. Evidence that the SEC’s data collection encounters accuracy and consistency problems might hamper the FSOC’s ability to evaluate the systemic risk of private fund advisers. The author shows that while the SEC’s data plays a crucial role in all stages of FSOC’s systemic risk assessment of private fund advisers, the FSOC relies most heavily on some of the most problematic disclosure items collected by the SEC. * Associate Professor, University of Saint Thomas School of Law, Minneapolis ([email protected]). The author is grateful for research assistance from research librarians Valerie Aggerbeck and Robert N. Farris. 1 SYSTEMIC RISK OF PRIVATE FUNDS
Cite: Wulf A. Kaal, The Systemic Risk of Private Funds after the Dodd-Frank Act (2014). SSRN: https://ssrn.com/abstract=2470008. https://doi.org/10.2139/SSRN.2470008
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