Fidelity Investments® Endorses Efforts of Financial Stability Board’s Enhanced Disclosure Task Force
BOSTON, MASSACHUSETTS -- Fidelity Investments®, one of the world’s leading global institutional asset managers, today announced its support for the Financial Stability Board’s (FSB) recent Enhanced Disclosure Task Force (EDTF) report, “Enhancing the Risk Disclosures of Banks.”
The report, which was issued on October 29, 2012, was the result of a collaborative private sector initiative between global financial institutions, auditors, investors and analysts who were brought together by the FSB to agree on a set of recommendations to improve risk disclosures by banks.
Fidelity, which was involved in this initiative, supports the FSB’s desire to improve transparency of banks globally. As a research-driven asset management firm, Fidelity has always been an advocate of transparency and disclosure by companies in which it invests.
“The need for improved disclosure is particularly salient for financial institutions, which continue to suffer from a lack of confidence in the inherent risks of their balance sheets and business models,” said David Hamlin, Head of Fixed Income Research with Fidelity. The 32 recommendations the EDTF put forward centered on topical areas such as business model risk, risk-weighted asset disclosure, liquidity, funding and encumbered assets, and the effects of forbearance activities on reported impaired loans. The report also included seven fundamental principles banks should consider in an effort to release more timely, relevant and revealing disclosures.
“The EDTF believes this will help the marketplace understand not just the facts and figures, but also the risk management and risk culture of banking institutions, “said Hamlin.
It is anticipated that the recommendations should be adopted during 2012. Fidelity looks forward to seeing these enhancements and engaging with bank management teams around the world on the issues of transparency and disclosure, as highlighted by the EDTF recommendations.
About Fidelity Investments
Fidelity Investments is one of the world’s largest providers of financial services, with assets under administration of $3.8 trillion, including managed assets of $1.6 trillion, as of October 31, 2012. Founded in 1946, the firm is a leading provider of investment management, retirement planning, portfolio guidance, brokerage, benefits outsourcing and many other financial products and services to more than 20 million individuals and institutions, as well as through 5,000 financial intermediary firms. For more information about Fidelity Investments, visit www.fidelity.com.
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