# kaal:claim:2748096-028

**Claim.** The SIFI designation regime does not reach hedge funds in practice: because the asset threshold is set high, at $50 billion or more in aggregate total consolidated assets, hedge funds are unlikely to be designated as systemically important financial institutions.

**Type.** failure  **Support.** argued

**Holds when.**

- U.S. SIFI designation under the Dodd-Frank Act
- $50 billion aggregate total consolidated asset threshold

**Source quote.**

> However, hedge funds are unlikely to be designated as SIFIs because of the high threshold on AUM.

**From.** Wulf A. Kaal, Timothy A. Krause, *Hedge Funds and Systemic Risk* (2016), Financial Stability Oversight Council, page 11

**Cite as.** Wulf A. Kaal, Timothy A. Krause, Hedge Funds and Systemic Risk (2016). SSRN: https://ssrn.com/abstract=2748096

**Verify.** sha256 of source PDF `8f30260f2c1db728b45c4f3b9b7c64358cf9d3217277bc3c63a910c32f87b508` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20and%20Krause%20-%202016%20-%20Hedge%20Funds%20and%20Systemic%20Risk.pdf

**Failure mode.** SIFI threshold underinclusion  (family: enforcement-gap)

**Topics.** systemic-risk

**Keywords.** sifi-designation, fsoc, regulatory-threshold, underinclusion, dodd-frank

**Related claims.**

- extends: https://wulfkaal.github.io/claims/2470008-017

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