This FS Regulatory Brief (a) analyzes the guidance’s key points, and (b) offers our view that further written regulatory detail is unlikely to be provided in the near term because of the guidance’s link to the Too Big To Fail debate in Washington and because of lack of agreement between the regulators.
The final FATCA regulations released in January brought clarity on some issues the insurance industry had identified in the proposed regulations. While some provisions in the final regulations attempt to simplify the impact on the insurance industry, other provisions have ultimately complicated FATCA's impact.
This FS Regulatory Brief provides our view of (a) where banks stand right now in preparing for Volcker, (b) the timing of the final rule and what it may look like, (c) the response of foreign regulators, and most important (d) what banks should be doing now.
Financial services mergers & acquisitions (M&A) will face both uncertainty and opportunities in 2013 due to several factors including increased regulatory costs, depressed organic growth, and the greater availability of attractive financing.
After decades of relying on agency distribution, life insurers are unprepared to keep up with changing consumer buying habits and behaviors. The number of life insurance agents continues to decline as more consumers turn to the Web for insurance. Insurers must adapt their go-to-market strategies toward direct distribution or risk losing market share.
The US Treasury Department and the Internal Revenue Service (IRS) released their guidance on FATCA for the asset management industry, with a compliance deadline of January 2014. Key issues in implementation and other areas remain to be resolved.
PwC released an earlier newsbrief on January 18, 2013 highlighting many of the distinctions between the proposed and final FATCA regulations, which potentially apply to all industries. To supplement the earlier newsbrief, this newsbrief describes the most notable differences between the proposed and final regulations that will impact insurers.
The final FATCA regulations document from PwC's Global Information Reporting (GIR) practice is formatted with references in an easy to read format. The GIR team has developed this version of the regulations to give tax and compliance professionals an easier option to study and know the rules surrounding FATCA.
Final regulations for Foreign Account Tax Compliance Act (FATCA) were issued on January 17, 2013. FATCA was enacted as part of the Hiring Incentives to Restore Employment Act (HIRE Act) on March 18, 2010 to serve as an administrative tool to prevent and detect US tax evasion and improve taxpayer compliance. The final regulations contain over 500 pages of guidance.
The financial crisis and new capital and regulatory rules have forced asset managers to reduce fees and have increased the challenges for sell-side firms participating in the cash equities and fixed income execution to custody value chain. Find out how firms are changing their business models to adapt to these market changes.
Foreign Account Tax Compliance Act (“FATCA”) was enacted as part of the Hiring to Restore Incentives (“HIRE”) Act. FATCA was enacted with a primary goal of providing the Internal Revenue Service (“IRS”) with an increased ability to detect US tax evaders concealing their assets in foreign accounts and investments.
For non-financial services companies, regulations introduced by the Dodd-Frank Wall Street Reform and Consumer Protection Act and Basel III will result in significant changes to the derivatives market. Every aspect of a corporation using derivative to manage risk will ultimately be affected—from risk strategies and corporate funding to operations and accounting. This 10Minutes provides insight on the impacts of new regulation on corporate entities and what those entities need to do now in order to meet impending reform deadlines and ensure they're well equipped to manage increased costs and compliance responsibilities.
The rise of the digital consumer and the high-cost infrastructure of physical banking locations are leading to a declining ROI for branches. Evolving the branch network to align with changing consumer and economic realities can help banks boost ROI and position themselves for the future.
Regulatory changes present an opportunity for property and casualty (P&C) and life insurance companies to reexamine and risk management strategies, processes, and infrastructures for measuring performance and analyzing risk.
On August 29, 2012, the SEC proposed new rules to implement the JOBS Act. The SEC’s proposed rule would permit the use of general solicitation when offering or selling private securities under Rule 506 of Regulation D, provided that certain conditions are satisfied.
August 2012 - On July 9, 2012, the Consumer Financial Protection Bureau issued two Notices of Proposed Rulemaking to implement key residential mortgage reforms of the Dodd-Frank Act. We briefly describe these proposals – which total almost 1400 pages combined.
This FS Regulatory Brief discusses the registration deadline issue in broad terms. It explores the ramifications that different dealer registration deadlines will have on sell- and buy-side firms, including on the start of swap data reporting. Additionally, there are updated timelines showing the key compliance dates for US swap dealers and foreign swap dealers.
July 2012 - As a part of a global initiative to help prevent a repeat of the 2008 financial crisis and reduce the threat posed by global systemically important financial institutions, the International Association of Insurance Supervisors has released its proposed assessment methodology for the identification of global systemically important insurers.
The CFTC and SEC released final definitions of what is a 'swap' or 'security-based swap' under the Dodd-Frank Act. This FS Regulatory Brief discusses the projected timing for swap dealers (and major swap participants) to comply with the CFTC's regulation of swaps.
July 2012 - On June 29, 2012, the CFTC released its much anticipated proposed cross-border guidance to interpret when Dodd-Frank Act derivatives regulations reach beyond US shores. It also released a proposed exemptive order that would grant temporary relief from compliance dates for certain regulations.
Consolidation in banking, insurance, and asset management impact profitability and drive the need for scale while economic risk is high. Alternative approaches are available for buyers and sellers in all deal environments.
June 2012 - This PwC FS Regulatory Brief is a summary of the changes made by Dodd-Frank to bank affiliate transaction rules, the status of regulatory efforts, what banks can do to assess its impact and related issues.
Traditional revenue generators are not growing to overcome new capital and regulatory requirements. Financial institutions are implementing continuous expense management programs to focus on efficiency in budgeting and reporting systems.
May 2012 - This FS Regulatory brief provides important information to assist hedge fund and private equity fund advisers in understanding the general risks around expense practices, and creating and maintaining a sound control framework to address those risks.
April 2012 - In this A Closer Look, we review and analyze the Federal Reserve Board's new standards for systemically important financial institutions (SIFIs) that introduce a single counterparty exposure (concentration) limit.
April 2012 - On April 20, 2012, the SEC issued an order temporarily exempting broker-dealers from the recordkeeping, reporting and monitoring requirements of new Rule 13h-1 under the Securities Exchange Act of 1934 and granting a permanent exemption for certain securities transactions.
This PwC podcast series focuses on the latest technical developments in the financial services industry and what those developments mean for you. Topics for podcasts range from broad financial services industry specific issues such as actuarial or banking to technical issues related to financial statement presentation resulting from new accounting standards/pronouncements, recently issued tax regulations, and IRS practice and procedure issues.
The CFTC and SEC approved a final rule that defines the terms 'swap dealer,' 'major swap participant' and 'eligible contract participant' under the Dodd-Frank Act. The CFTC has provided compliance deadlines for swap dealer/MSP registrants in October that will hold firm absent significant regulatory delay.
These PwC papers discuss ways of aligning business and talent management strategy as it relates new employees entering the workplace – the generation known as millennials. These publications look at how their unique characteristics demand an innovative approach to recruitment, retention, management and development.
April 2012 - The Federal Reserve Board issued a formal Policy Statement on its interpretation of the conformance period provided in the Dodd-Frank Act for the Volcker Rule in which they 'confirmed' that covered entities 'by statute' have two years from July 21, 2012, to conform all of their activities and investments to the Volcker Rule.
April 2012 - In this FS Regulatory Brief, we review and analyze the Financial Stability Oversight Council's final rules for designating nonbank financial companies as SIFIs, the designation process and how companies can prepare.
This financial services sector analysis of PwC's 2011 Global Economic Crime Survey examines the current fraud landscape, taking a close look at who is committing economic crime, what new types of fraud are emerging and how they can be addressed.
March 2012 - The CFTC amended rules to require private fund managers and SEC-registered investment companies with more than 5% of their portfolio holdings in commodity interests to register with the CFTC. The CFTC also proposed 'harmonization' rules to ease dual compliance with the SEC and CFTC.
This white paper explores PwC's unique approach to FATCA compliance and how its methodology has helped financial services institutions develop strategic and comprehensive assessment and implementation blueprints to achieve compliance.
December 2011 - This A Closer Look describes the proposed prohibition on banking entities’ sponsoring, investing in, or having certain relationships with hedge funds or private equity funds. As proposed, the prohibition would extend to 'covered funds,' including traditional hedge and private equity funds, as well as other funds, including certain foreign funds and commodity pools.
The Federal Reserve, FDIC, OCC and SEC recently issued the long-awaited proposed rule implementing the Volcker Rule of the Dodd-Frank Act. The proposed Volcker Rule would be the most far-reaching regulatory prohibition in US financial history by prohibiting proprietary trading not only in FDIC-insured institutions, but also in any affiliate regardless of its business or geographic location. This A Closer Look focuses primarily on the proprietary trading aspects of the Proposed Rule and tries to help answer the broader question - what should I do now?
October 2011 - In June, the SEC adopted final rules as mandated by the Dodd-Frank Act to require many previously exempt advisers to private funds to become registered as investment advisers with the SEC. The final rules also establish new exemptions from the adviser registration rules.
August 2011 - The Dodd-Frank Wall Street Reform and Consumer Protection Act and rules recently adopted by the Securities and Exchange Commission require advisers to private funds to register with the SEC as investment advisers and come into compliance with the Investment Advisers Act by March 31, 2012. This FS Regulatory Brief describes the Custody Rule and some considerations for private fund advisers as they prepare to register with the SEC.
On May 25, 2011, the SEC adopted final rules to implement a whistleblower program as established by the Dodd-Frank Act. The whistleblower program requires the SEC to pay awards to eligible whistleblowers who voluntarily provide the agency with original information about a violation of the federal securities laws that leads to a successful enforcement action in which the SEC obtains monetary sanctions totaling more than $1 million. This A Closer Look describes the final rule and its impact.
The Dodd-Frank Act will for the first time bring private equity fund advisers under the oversight of the SEC. The SEC recently indicated that private fund advisers -- including advisers to private equity funds -- will have until the first quarter of 2012 to complete their SEC registration and come into compliance with their new obligations under the Advisers Act. Advisers should use this brief additional time to ensure that they have implemented effective controls and compliance programs and are fully ready for registration. In this edition of A Closer Look, PwC describes the impact of Dodd-Frank on private equity advisers and looks into some of the particular issues they will face.
When the Dodd-Frank Wall Street Reform and Consumer Protection Act was enacted in July 2010, many said that it was the most significant remake of the US financial services sector since the Great Depression. That turned out to be an understatement. The six months following passage have demonstrated that Dodd-Frank's reach impacts not only every segment of the financial services industry but the rest of corporate America in ways that may not have been fully anticipated. This special edition of A Closer Look summarizes the key progress on Dodd-Frank at the six-month milestone.