Cross-Border Clarity: CFTC provides guidance and additional time for industry to address cross-border swaps - December 2012
On December 21, 2012, the Commodity Futures Trading Commission (“CFTC”) issued a final “Exemptive Order” and “Further Proposed Guidance” to clarify its approach to regulating cross-border swaps activities under Title VII of the Dodd-Frank Act. In issuing this release, the CFTC continues to juggle the competing tasks of regulating US swaps activity, avoiding competitive inequity, discouraging evasion and deferring to local regulation. This FS Regulatory Brief discusses the CFTC’s approach to important cross-border questions and offers insight into some of the expected practical impacts on foreign and US swap dealers.To read this FS Regulatory Brief, please click here
Certain foreign-owned US banks may avoid registration under swap dealer aggregation rule - December 2012
Certain US banks engaged in limited swap dealing activities were granted relief from swap dealer registration by the Commodity Futures Trading Commission (CFTC) on December 20, 2012. Without this relief, these US banks were facing the prospect of either registering as a swap dealer, modifying their activities to fit into registration exemptions, or ceasing swap dealing all together. This FS Regulatory Brief provides a description of the aggregation rule and the relief provided to US banks with registered foreign bank parents.To read this FS Regulatory Brief, please click here
Proposed US/UK resolution strategy – more questions than answers: We are a long way from a global resolution regime - December 2012
The FDIC’s Systemic Resolution Advisory Committee held an open meeting concerning a Joint Paper by the FDIC and Bank of England which proposed a joint US/UK resolution regime for globally systemically important financial institutions. This FS Regulatory Brief highlights key points from the Joint Paper and places them within the broader context of the Federal Reserve action.To read this FS Regulatory Brief, please click here
CFTC delivers holiday gift to Wall Street -- Delays EBC and Documentation Requirements - December 2012
The Commodity Futures Trading Commission (CFTC) gave swap dealers a just-in-time reprieve from the year-end deadline to comply with most of the external business conduct and swap documentation duties to counterparties. This FS Regulatory Brief describes the impact of the Interim Final Rule on registering swap dealers as well as the significant deadlines that remain.To read this FS Regulatory Brief, please click here
Is Your Counterparty Documented? ISDA Protocol adherence slower than expected - December 2012
New rules adopted by the CFTC require a swap dealer to vet each counterparty, update documentation, and deliver notices and disclosures to each of its counterparties before each trade. In other words, thousands of swap dealers’ accounts are affected. The industry has deployed a uniform solution to streamline efforts surrounding this challenging task. ISDA and Markit have teamed up to create a standardized, electronically managed documentation and disclosure solution called the ISDA DF Protocol. This FS Regulatory Brief provides a snapshot of participation rates for the ISDA DF Protocol and information about the protocol.To read this FS Regulatory Brief, please click here
Fed to raise requirements for foreign banks: Not waiting for home country regulators - November 2012
Federal Reserve Governor Daniel Tarullo spoke before the Yale School of Management Leaders Forum to outline a new “modified” regulatory approach. This FS Regulatory Brief describes the proposal in detail, which FBOs would likely be affected, and what these FBOs should be doing now. To read this FS Regulatory Brief, please click here
Advisers’ key concerns on Form PF implementation - November 2012
Through its Form PF work with several first-time filers, and a recently conducted survey of private fund adviser clients, PwC has identified key trends and issues that are valuable to all filers as the reporting requirement continues to phase in for registered private fund investment advisers. This FS Regulatory Briefdescribes these key concerns in detail, provides analysis of the survey, and suggests what filers should do. To read this FS Regulatory Brief, please click here
CCAR 2013: Highlights and insights - November 2012
The recently published instructions for the 2013 Comprehensive Capital Analysis and Review (CCAR), issued by the Board of Governors of the Federal Reserve, contain a number of notable updates to the CCAR process. This FS Regulatory Brief describes the CCAR updates in detail and next steps for bank holding companies. To read this FS Regulatory Brief, please click here
More intense SIFI supervision called for in FSB’s G-SIB update - November 2012
On November 1, 2012, the Financial Stability Board released its 2012 list of 28 Global Systemically Important Banks (G-SIBs) as part of its periodic assessment. This FS Regulatory Brief describes new G-SIBs supervision, G-SIBs designation and the expected impact. To read this FS Regulatory Brief, please click here.
FSB on Living Wills Progress - G-SIFIs: You’ve only just begun; NBFCs: You’re next - November 2012
The Financial Stability Board released a report on November 2, 2012, describing the progress made by jurisdictions thus far in implementing its Key Attributes of Effective Resolution Regimes for Financial Institutions.In this FS Regulatory Brief, we summarize recent reform and the impact for global systemically important financial institutions and non-bank financial companies.
Treasury exempts FX swaps and forwards from most derivatives regulation- November 2012
The US Treasury Department issued a final determination that exempts foreign exchange (FX) swaps and forwards from most of the requirements in Title VII of the Dodd-Frank Act, effective November 20, 2012. This FS Regulatory Briefdescribes the new Treasury exemption for FX swaps and forwards and offers insights as to its expected impact.
To read this FS Regulatory Brief, please click here.
FSOC moves swiftly on money market reform - November 2012
On November 13, 2012, the Financial Stability Oversight Council (FSOC) unanimously voted to issue proposed recommendations for structural reforms to money market funds (MMFs) intended to make them more resilient to runs. The FSOC is proposing three alternatives including a floating NAV, a capital buffer, redemption holdbacks and enhanced portfolio diversification, liquidity and disclosure requirements. To read more about the FSOC's action - and how the focus now shifts back to the SEC -please click here.
The FSB pushes for enhanced risk disclosures - November 2012
The Financial Stability Board recently sponsored the creation of the Enhanced Disclosure Task Force (EDTF) to establish principles, recommendations and leading practices to enhance bank risk disclosures. The EDTF recommendations mark a further step towards the inclusion of risk-based information in financial reporting. In this FS Regulatory Brief, we summarize the EDTF recommendations, their impact, and how banks should respond. To read this FS Regulatory Brief, please click here.
Swap regulation commences – Day 1 closes with a flurry of CFTC relief: What does it all mean? - October 2012
On Friday, October 12, 2012, regulation of swaps under the Dodd-Frank Act by the CFTC officially began. Some market participants remain confused about the scope and impact of this change. This FS Regulatory Brief summarizes the CFTC actions and, as important, what is still not addressed. To read this FS Regulatory Brief, please click here.
OCIE sends new advisers a letter describing “presence exams” - October 2012
On October 9, 2012, the SEC’s OCIE posted an open letter to new adviser registrants on its website, and its regional offices sent the same letter to new registrants in the region. The OCIE letter describes what it terms its “Presence Exams initiative” for these advisers. To read this FS Regulatory Brief, please click here.
What mutual fund CCOs and GCs are talking about now - October 2012
Recently, PwC had a chance to sit down with a number of Chief Compliance Officers (CCOs) and General Counsels (GCs) of large mutual fund firms to talk about the current regulatory and compliance environment. Among the topics that were most on their minds now were the following: CFTC registration, money market reforms, LIBOR, global compliance programs and board reporting. To read this FS Regulatory Brief, please click here.
Money market reform in flux
Reading the tea leaves on money market fund regulation - October 2012
The mutual fund industry, securities regulators, the Department of the Treasury and banking regulators are engaged in a contentious debate about whether reforms are needed to make money market mutual funds more resilient and resistant to “runs,” and if so, what type of reforms would be best. In this A Closer Look, we summarize the existing options for reform and their impact, and handicap possible next steps.
The creation and usage of Legal Entity Identifiers (LEIs) - September 2012
The recent financial crisis has created a universal awareness of reference data and helped elevate it from a back office concern to a critical business function. Specifically, global regulators have recognized that the consistent identification of clients and counterparties must be a key foundational component in any effort to manage systemic risk. Enter the global legal entity identifier (the “LEI”).
The SEC proposes new rules to allow issuers making private offerings to advertise - September 2012
The “Jumpstart Our Business Startups Act” (“JOBS Act”), enacted in early April of 2012, required the SEC to lift the prohibitions on general solicitation and to allow issuers to advertise private offerings, as long as all purchasers of such interests are accredited investors (as already required). On August 29, 2012, the SEC proposed new rules to implement the JOBS Act.
CFPB Issues New Mortgage Proposals: Analysis and Next Steps - 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. To read this FS Regulatory Brief, please click here.
Dodd-Frank Swap Regulation Starts October 12, 2012: Or Does It? - August 2012
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.
G-SIIs vs. G-SIFIs: Lines blur between insurance and banking- 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 Tipping Point: Swap Product Definitions Finalized- July 2012
On July 10, 2012, the CFTC and SEC released final definitions of what is a “swap” or “security-based swap” under the Dodd-Frank Act. While the content of the product definitions rule is important and of interest, this FS Regulatory Brief discusses the projected timing for swap dealers (and major swap participants) to comply with major segments of the CFTC’s regulation of swaps. To read this FS Regulatory Brief, please click here.
Extraterritorial derivatives guidance proposed by CFTC: More analysis required, impact unclear- 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. To read this FS Regulatory Brief, please click here.
US Basel III Regulatory Capital Regime and Market Risk Final Rule - July 2012
In a long-anticipated but not eagerly-awaited action, the three federal banking agencies released three notices of proposed rulemaking that will revise regulatory capital rules for US banking organizations and align them with the Basel III capital standards that were issued in December 2010 and subsequently updated in 2011 (Basel III). In this A Closer Look, we review and analyze the new regulatory capital rules.
To read this A Closer Look, please click here.
23A revisited: Significant changes to affiliate transaction rules are coming- June 2012
This PwC FS Regulatory Brief is intended to serve as a summary of the changes made by Dodd-Frank to bank affiliate transaction rules, the status of regulatory efforts, what banks can be doing now to assess possible impacts, and some significant open issues from our perspective. To read this FS Regulatory Brief, please click here.
10Minutes on derivatives reform for non-financial services companies - December 2012
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.
FATCA and KYC: Similar yet different - November 2012
FATCA extends customer due diligence and reporting requirements well beyond what is typically performed for "Know Your Customer" (KYC) purposes. This whitepaper highlights four key challenges that Anti-money-laundering (AML) and KYC professionals should understand as their financial institutions begin to implement FATCA alongside existing account opening and AML/KYC capabilities.
How we can help commodity pool operators - October 2012
In February 2012, the CFTC approved rules that will require some private fund managers and investment companies to register with the CFTC as commodity pool operators.
CFPB national servicing standards proposal - September 2012
The Consumer Financial Protection Bureau (CFPB) released proposed national servicing standards for comment for the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA).
Form PF - How we can help asset managers - September 2012
The SEC and the CFTC adopted final rules to require registered advisers to private funds to file reports that would help the agencies assess systemic risk. Improved systems, processes and controls will enable information reporting and deliver benefits management reporting, investor reporting, financial reporting and risk management.
A fast take on the impact of the Dodd-Frank Act on asset management firms- April 2012
Several provisions of the Dodd-Frank Act impact the asset management industry, either directly as regulated investment advisers, or indirectly as participants in the markets. Here is a summary of how Dodd-Frank impacts asset managers.
The SEC adopts final rule on hedge fund filing - October 2011
The Securities and Exchange Commission (SEC) unanimously approved a final rule requiring registered advisers to private funds to report detailed information on new Form PF. The information will be used by the Financial Stability Oversight Council to gain insight into the activities of advisers, enhance its risk monitoring of the financial markets, and assess systemic risk.
FDIC Board to Consider Volcker Rule Proposal on October 11th - October 2011
The FDIC's Board will consider Proposed Rulemaking on the Volcker Rule at its next meeting on Tuesday, October 11, 2011 at 10:00 AM. The FDIC is the first Agency (the others are the Federal Reserve Board, OCC, SEC and CFTC) to consider a Volcker Rule proposal. Industry sources indicate a 60-day comment period is likely.
Avoiding the Headlines: How Financial Services Firms Can Implement Programs to Prevent Insider Trading
Insider trading has become a top priority of prosecutors, with increased cooperation among civil and criminal regulators, both in the United States and abroad.