Vanguard, the second-largest money manager in the world, has joined peers BlackRock, Fidelity and others in sharply criticizing the Financial Stability Board’s (FSB) proposal to classify certain funds as ‘too big to fail’, calling the plan ‘deeply flawed’.
The FSB proposal, which was open to public comment until the end of May, plans to identify funds that could pose a ‘systemic risk’ and may oblige them to increase the amount of capital they hold, introduce stricter reporting requirements and take other measures to ensure the security of the global financial system.
Last year, <a class="external" href="https://www.financialstabilityboard.org
