Fidelity Investments, BlackRock Inc. and PIMCO were among more than two dozen firms, industry stakeholders and lawyers that filed letters in an effort to discount the credibility of a report released by the Office of Financial Research labeling asset management firms as systemically important.
"The conclusions in the report are based on a number of inaccurate assumptions about how asset managers, including institutional asset managers, operate, the report should not be relied upon by the council in its review of the asset management industry," wrote Douglas Hodge, managing director, chief operating officer of Pacific Investment Management Company LLC. "PIMCO urges the SEC, as a member of the council, to recommend that the council revise and re-issue the report and not use the report as a basis of future policymaking."
Scott Goebel, Fidelity's general counsel, criticized the report as an "incomplete, inaccurate and misleading view of the industry" and should not be used for future regulatory recommendations.
"The resolution of an asset management firm would not require government support," said Barbara Novick, BlackRock's vice chairman. "Indeed, asset management firms do not 'fail' in this sense, because they have no balance sheet activities to support."
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