On October 18, the SEC proposed rules: (i) to enable shareholders to cast advisory votes on executive compensation and “golden parachute” arrangements and (ii) to require institutional investment managers to file with the SEC their votes on say-on-pay, frequency of say-on-pay votes, and golden parachute arrangements. Comments on the proposed rules must be submitted by November 18. SEC Release. SEC Proposed Rule 1. SEC Proposed Rule 2.
On October 25, DBRS released its methodology for rating Canadian public-private partnerships. DBRS Release.
On October 29, Fitch published a newsletter describing reasons U.S. CMBS loans have transferred to special servicing, apart from imminent default. Fitch Release.
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On October 26, ISDA published two best practice documents: the OTC Derivatives Settlements Best Practice and the OTC Derivatives Interest Compensation Claims Best Practice. ISDA Release.
On October 25, the SEC requested comments on issues related to a study required by the Dodd-Frank Act to determine the extent private rights of action under the antifraud provisions of the Securities Exchange Act of 1934 should be extended to cover transnational securities fraud. Comments on the issues must be submitted by February 18, 2011. SEC Request for Comments.
On October 27, the Financial Stability Board (FSB) issued principles to reduce reliance on credit ratings in laws and regulations, including removing references to ratings “wherever possible” and replacing them with alternative standards of creditworthiness. FSB Release.
On October 27, Washington DC Attorney General Peter Nicklas issued an enforcement statement describing when notices used to commence foreclosures in DC may mislead homeowners and violate DC’s consumer protection law. The statement clarifies that a foreclosure may not be commenced against a DC homeowner unless the security interest of the current noteholder is properly supported by public filings with DC’s Recorder of Deeds. This requirement is not met through the use of the MERS registry. DC Attorney General Release. Foreclosure Statement.
The SEC released a sample letter it sent to certain public companies in October as a reminder of their disclosure obligations in Form 10-Qs and subsequent filings relating to potential risks and costs associated with mortgage and foreclosure-related activities or exposures. SEC Release.
On October 15, Fitch updated its global rating methodology for CDOs backed by structured finance assets. Fitch Release.
On October 15, DBRS released its commercial real estate non-performing loan liquidating trust methodology. DBRS Release.
On October 18, Moody’s revised its framework for reviewing hedges in connection with highly-rated structured finance cashflow transactions. Moody’s Report.
On October 18, Moody’s revised its approach for evaluating jointly supported letter of credit-backed transactions and introduced its global Joint Default Analysis methodology. Moody’s Report.
On October 15, Fitch revised its Ratings Definitions to modify the linkage between long- and short-term ratings and the definition of Expected Ratings. Fitch Release.
On October 20, Moody’s listed important factors in its analyses of Japanese ABS which incorporate declarations of trust. Moody’s Release.
On October 20, DBRS released its methodology for rating Canadian trade receivables securitization transactions. DBRS Release.
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