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John Waggoner: Stress Tests Still Unpopular With Fund Industry

FYI: The fund industry is pushing back against the Financial Stability Board's proposal for stress tests on mutual funds.
The Basil, Switzerland-based FSB proposed stress tests for mutual funds, similar to those for banks , in June to regulators in the G20 nations. The FSB's proposals would be designed to show how funds would react to large waves of redemptions, such as might happen in bond funds during an interest rate spike. The FSB also proposed redemption fees to limit redemptions and offset the damage done if funds had to sell at fire-sale prices to meet investor demands for their cash.
Regards,
Ted
http://www.investmentnews.com/article/20161003/FREE/161009990?template=printart
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