SEC Hosts Second Conference on Emerging Trends in Asset Management

In mid-May, the Securities and Exchange Commission’s Division of Investment Management hosted its second “Conference on Emerging Trends in Asset Management.” The conference focused on trends in products and strategies, technology, and regulation. The first panel discussed trends in ETF product offerings including the rise in passive products more generally. Another panelist touched on the difference between private credit and non-bank financial intermediation, noting that the historical view of private credit as ‘alternative’ may be due for a change in light of the shift away from banks as the core of the financial system and the evolution of risks and risk mitigation measures. Former MFDF President Susan Wyderko spoke on issues related to registered funds noting that since the creation of the Commission, the basic issues have not materially changed. She added independent fund directors are equipped to handle conflicts of interest as well as understanding their role in overseeing technology changes and developments.

In his opening remarks, Chair Gary Gensler noted “[o]pen-end funds have potential liquidity mismatches—between investors’ ability to redeem daily on the one hand, and, on the other, funds’ securities holdings that may have lower liquidity.” He noted that the Commission has responded to these concerns over the years with targeted changes in order to ensure the stability of these products. Chair Gensler briefly touched on collective investment trusts (CITs) disclosing that he has “asked staff to consult with bank regulators on how to best mitigate for regulatory gaps between collective investment funds and open-end funds.” Chair Gensler further stated that he has asked staff to consider reproposing the Commission's Predictive Data Analytics and the Safeguarding Advisory Client Assets rule proposals after reviewing feedback received from commenters.

Click here to view the SEC webpage covering the Conference on Emerging Trends in Asset Management.
Click here to read SEC Gary Gensler’s opening remarks.