Regulation

Where are the biggest opportunities for business and government to work together?

CEOs around the world expect their governments to play a role in boosting national competitiveness. Most identify education, infrastructure, and financial sector stability as areas where governments can make a difference. Progress is often accelerated by close cooperation between public and private sectors.

In the US, business leaders don’t hide their disappointment in their government, be it in managing the implications of the economic crisis or the fiscal deficit and debt burden. Yet, evidence shows that difficult government-business relationships can be overcome in the interest of addressing shared priorities. One such area is skills development. More than 50% of US CEOs, for example, are increasing their investments in formal education systems as they look to fill critical talent gaps.

Featured regulation insights

10Minutes on the future of lessee accounting As early as 2014, in the US and internationally, leases could be required to appear on companies' balance sheets. The new rules are expected to affect an estimated $1.2 trillion in current leased assets, ranging from store locations and medical equipment to aircraft and manufacturing machinery.
FDA Food Safety Modernization Act: The President signs the most sweeping overhaul of food-safety legislation since 1938 The new FDA Food Safety Modernization Act, signed into law on January 4, 2011, will usher in a new era of food-safety regulation, with increased enforcement, stiffer penalties and broader record-keeping requirements for high-risk food. Download this key publication to learn about some of the significant features of the new legislation and how it will impact industry companies.
10Minutes on US financial reform The Wall Street Reform and Consumer Protection Act (The Dodd-Frank Act) signed by President Obama ushers in a new financial regulatory architecture. Of chief concern to business leaders: How will The Act affect my company' ability to fund its needs, maintain liquidity, earn competitive rates on cash and investments, manage commodity and financial risks through derivatives, and provide financing to my customers?
Point of View: Slowing down the pace of standard setting The Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) are working on several joint projects designed to improve financial reporting information for investors while aligning U.S. and international accounting standards. While convergence is an important component of achieving a single set of high quality global accounting standards, some question whether the 2011 deadline can be met given the multitude of convergence projects.
10Minutes on health reform With the recent passing of healthcare legislation, one of the most important pieces of social legislation in decades, businesses will have to work quickly to understand and adjust to how this will impact their organizations.
Tax legislative outlook 2010 This PwC publication offers a preview of the challenges facing the Congress in 2010, including economic growth and job creation, expired tax provisions, international tax reform proposals, deficit reduction, tax-related priorities such as health care reform and climate change, and other tax policy matters of importance to today's business leaders.
10Minutes on international tax increases Proposals from the Obama Administration to change taxation for multinational corporations are significant. We explore what's at stake for US companies, jobs, competitiveness and corporate tax rates.
Paying Taxes 2010: Comparing ease of complying around the world Paying Taxes, a PwC and the World Bank study, measures the ease of paying taxes across 183 economies worldwide by assessing both the cost of taxes and the administrative burden of tax compliance. Compare tax-ease rankings with our interactive world map.

Related regulation insights

Accelerating FATCA compliance
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.

The Road to Swap Dealer Registration: Preparing for Swap Dealer Registration Under the Dodd-Frank Act of 2010
The transition to registered swap dealer status for OTC market participants under Dodd-Frank will require a review of current booking entities and business practices, which will impact systems, policies and procedures. This FS Viewpoint identifies how registered swap dealers can remain in compliance and how industry participants are dealing with swap dealer registration.

Compliance Program Requirements for Private Equity Fund Advisers
Private equity firms need to consider several factors when creating and implementing a compliance program to adopt a compliance program tailored to the particular compliance risks they face.

The Federal Reserve’s proposal to implement enhanced prudential standards for large bank holding companies
The Federal Reserve Board (FRB) issued a proposal to implement Sections 165 and 166 of the Dodd-Frank Act (Dodd-Frank or the Act) that it views as "package of enhanced prudential standards” on bank holding companies and on nonbank financial companies (NBFCs) that are designated for supervision by the FRB. Comments are due on the proposal by March 31, 2012.

XBRL reporting risk and the role of internal audit
Companies that have been submitting XBRL reports are no longer covered by the SEC's modified liability provisions for XBRL reporting. This paper reviews the risks when implementing XBRL and suggests how internal audit functions can help their organizations address reporting risks and improve supporting processes.

The FSOC SIFI Designation Proposal for Nonbank Financial Companies
We examine factors that define a nonbank financial company (NBFC) to make it subject to possible designation, a review of the three-stage determination process and of stage 1 criteria designed by the FSOC for designation.

The waves of change in Federal human capital management
Changes in Federal human capital management from social and demographic changes, the global economic crisis, and the current administration impact how these organizations manage their workforce This publication can support human capital professionals in their work with federal agencies about effective human capital management.

2012 Current developments for directors: Finding direction in uncertain times
This annual publication focuses on the critical governance issues directors and senior executives face, offering information, insights, and practical guidance to help directors meet the demands of their role and enrich boardroom discussions.

Banking Supervision at the Federal Reserve: The Times are a Changing
The executive vice president responsible for Bank Supervision at the Federal Reserve Bank of New York (FRBNY) recently addressed the New York Bankers Association and her address focused on the changes that the FRBNY has made to enhance the supervisory process both in terms of their staffing and supervisory approach.

The Volcker Rule Proposal: Regulators Propose Restrictions on “Covered Funds"
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.

SEC and CFTC Adopt Final Rules Requiring Registered Advisers to Private Funds to File New Form PF
The SEC and the CFTC adopted final rules as mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act to require registered advisers to report on new Form PF information concerning the private funds they advise. This A Closer Look describes the final rules requiring new Form PF and their impact.

Supervisory Expectations on Capital Assessment - Stepping Up To Basel III
On November 4th, Governor Daniel Tarullo delivered a speech entitled "The International Agenda for Financial Regulation" before the ABA Banking Law Committee. While Governor Tarullo touched upon a number of topics including the additional efforts to complete international and domestic reform on capital and liquidity, cross boarder resolution, reliance on wholesale funding and OTC derivatives reform, his comments on capital, particularly how the US Supervisors will deal with the interim period, are of particular note.

Anti-corruption Laws: Private Equity Not Exempt
The increased scrutiny and enforcement of the FCPA and other anti-bribery laws presents a clear call to action for private equity firms. Here are some of the controls, procedures and training you need to mitigate the risk of violation.

The SEC’s New Large Trader Reporting Requirements Place New Regulatory Obligations on Both Asset Managers and Broker-Dealers
PwC comments on the expected significant impact of the SEC’s new "Large Trader Rule," which went into effect in October 2011.

Point of view: The path forward for international standards in the United States
The SEC announced plans for the future use of international financial reporting standards (IFRS) by US public companies. Completion of the current convergence agenda, enhanced cooperation among capital market securities regulators, and a refocused international interpretations body will provide a basis for a single set of high-quality global accounting standards.

Integrating technology into your compliance program to improve effectiveness and efficiency
Financial services firms should review their compliance and control systems to make sure they are fully functioning and compliant with new regulatory requirements being imposed by the Dodd-Frank Wall Street Reform and Consumer Protection Act.

FDIC Board to Consider Volcker Rule Proposal on October 11th
The FDIC will discuss the Volcker Rule at its upcoming meeting on October 11th.

Domestic SIFIs: resolution plan requirements final rule
The FDIC approved its final resolution plan rule for systemically important financial institutions (SIFIs) and an interim final rule regarding resolution plans for insured depository institutions (IDIs). This FS Regulatory Brief addresses the changes in the Final SIFI resolution rule from the earlier versions.

Dodd-Frank act resolution plan final rule and interim FDIC final rule on resolution of large insured depository institutions
The board of the Federal Deposit Insurance Corporation (FDIC) approved a final rule on resolution plans required by the Dodd-Frank Act for important financial institutions. The Federal Reserve Board is also expected to approve the final rule soon. These final rules will impact the scope and filing deadlines for foreign banks.

FDIC Insured Depository Institution Resolution Plan Interim Final Rule
The FDIC interim final rule on depository institutions contains several significant changes from the notice of proposed rulemaking that was released before the passage of the Dodd-Frank Act in 2010.

SSAP 101 unanimously adopted by NAIC
The NAIC's Financial Condition Committee approved the adoption of SSAP No. 101, which contains significant changes to accounting for current and deferred federal and foreign income taxes. Although the standard is not effective until January 1, 2012, insurers should quantify the impact of adoption now and plan accordingly.

Maximizing internal audit
In this business brief, PwC shows how enhancing Internal Audit's role can help you reduce risks, optimize costs, and execute your growth strategies.

Off-balance-sheet arrangements
New reporting requirements for off-balance-sheet arrangements will impact financial reporting as well as current and future business ventures, financing, financial metrics, operations, stakeholder communications, internal controls, and IT systems.

International tax increases
PwC analyzes the proposals to change the taxation of US multinational corporations in President Barack Obama's proposed fiscal year 2010 budget.

Point of view: Fair value accounting: A proposal to improve fair value accounting
PwC explains the benefits and challenges of fair value accounting for measuring the value of financial instruments

The Obama plan for health reform
PwC presents an overview of the possible impact the Obama proposals for healthcare reform could have on businesses In the coming year, large employers could face major changes in this area proposed by President Obama and members of the Democratic Congress.

Transitioning to IFRS
With mandatory IFRS transition likely to begin in 2014, companies need to look at how management will communicate with investors post-transition; how some companies may need to change their business practices with customers and vendors; and how the change to IFRS will affect compensation. Here, PwC offers in-depth overview of the issues.

Fair value in financial reporting
Fair value is the best available method for financial instruments but its limitations and challenges should be carefully evaluated before expanding its use beyond where it's applicable today. PwC has some guidance you can use.

Tax reform
Here we outline steps companies should be taking now to anticipate both risks and opportunities from likely tax reform scenarios and how to prepare for potential outcomes.

Point of view: Fair value accounting: Is it an appropriate measure of value for today’s financial instruments?
PwC explains the benefits and challenges of fair value accounting for measuring the value of financial instruments.

IFRS
International Financial Reporting Standards (IFRS), has so much support in the US that the SEC has designated a date for mandatory adoption by all US public companies. What are the benefits? For one, the use of globally accepted standards will increase the competitiveness of US capital markets by removing barriers.