France Works on Stress Test Involving Hedge Funds, Insurers (1)

France is working on a test of how insurers and investment funds would weather a period of economic and market stress as turmoil earlier this year, highlighting how financial regulators are increasing scrutiny of an area that was previously less in focus.

The pilot exercise, which will also include banks and hedge funds, will be designed to understand risks and how they are propagated and it will have “no regulatory implications,” Francois Villeroy de Galhau, Governor of the Banque de France, said at a conference on Tuesday.

Global regulators have focused on funds and insurers as they play a ...