Treasury Pushes for Money Market Fund Reforms

On September 27, Treasury sent a letter to the Financial Stability Oversight Council calling for structural reforms to the regulation of money market funds.  The letter, which relates to last month’s announcement by the SEC that it would not proceed with public comment on MMF reforms, requested that the FSOC solicit comments on certain MMF reforms and provide a recommendation to the SEC to adopt such standards.  Treasury Letter.

CFTC Adoption of Final Form PF

On October 31, pursuant to Sections 404 and 406 of the Dodd-Frank Act, the CFTC adopted a new rule requiring certain advisers to private funds that are dually registered with the CFTC and the SEC to report information to the SEC on a new Form PF for use by the Financial Stability Oversight Council to monitor risks to the U.S. financial system. The SEC approved the joint rule on October 26. Most private fund advisers will be required to begin filing Form PF following the end of their first fiscal year or fiscal quarter ending on or after December 15, 2012, depending upon the type and amount of AUM. However, certain large reporting advisers will be required to file Form PF following their first fiscal year or fiscal quarter after December 15, 2012. CFTC Release. Final Rule. Form PF.

SEC Adoption of Final Form PF

On October 26, pursuant to Sections 404 and 406 of the Dodd-Frank Act, the SEC adopted a new rule requiring certain advisers to private funds to report information on a new Form PF for use by the Financial Stability Oversight Council to monitor risks to the U.S. financial system. Most private fund advisers will be required to begin filing Form PF following the end of their first fiscal year or fiscal quarter, depending upon type of and amount of AUM, to end on or after December 15, 2012. However, the following advisers must begin filing Form PF following the end of their first fiscal year or fiscal quarter, as applicable, to end on or after June 15, 2012: (i) advisers with at least $5 billion in AUM attributable to hedge funds; (ii) liquidity fund advisers with at least $5 billion in combined AUM attributable to liquidity funds and registered money market funds; and (iii) advisers with at least $5 billion in AUM attributable to private equity funds. Advisers to private funds with less than $150 million of AUM will not be required to file Form PF. SEC Release.

FSOC Proposed Rule on Systemic Importance of Nonbank Financial Companies

On October 11, pursuant to Section 113 of the Dodd-Frank Act and in response to comments to a proposed rule issued on January 18, the Financial Stability Oversight Council issued a second notice of proposed rulemaking and proposed interpretive guidance to provide additional details regarding the framework the FSOC intends to use in the process of assessing whether a nonbank financial company could pose a threat to U.S. financial stability. Comments must be submitted within 60 days of publication in the Federal Register. FSOC Proposed Rule.

Geithner Testimony on FSOC Report

On October 6, on behalf of the Financial Stability Oversight Council, Treasury Secretary Geithner testified before the Senate Banking Committee and the House Financial Services Committee, outlining the conclusions and recommendations made by FSOC in its first annual report, which was released in July. Geithner Testimony.

Treasury Federal Advisory Committee on Insurance

On May 6, Treasury announced its intention to create a Federal Advisory Committee on Insurance to advise Treasury and the new Federal Insurance Office that will be established under the Dodd-Frank Act. The Director of the new committee will serve as a member of the Financial Stability Oversight Council. Applications for membership on the Committee must be submitted within 15 days after the date of publication in the Federal Registrar. Treasury Release. Notice of Establishment.

Joint Proposed Rule on Resolution Plan Reporting

On April 12, the Fed and the FDIC released a proposed rule pursuant to Section 165(d) of the Dodd-Frank Act which would require systemically significant bank holding companies and nonbank financial companies to submit annual resolution plans and quarterly credit exposure reports. The requirements would apply to bank holding companies with consolidated assets of $50 billion or more or nonbank financial companies designated by the Financial Stability Oversight Council for supervision by the Fed. Comments must be submitted by June 10. Joint Release. Proposed Rule.

Fed Proposed Rule on Supervision of Financial Market Utilities

On March 30, the Fed issued a notice of proposed rulemaking implementing Sections 805 and 806 of the Dodd-Frank Act. The proposed rule establishes risk-management standards for Financial Markets Utilities (FMUs) designated as systemically important by the Financial Stability Oversight Council. The rule also sets forth advanced notice requirements for a designated FMU seeking to change rules, procedures, or operations that could materially affect the risks presented by the designated FMU. Comments must be submitted within 45 days after publication in the Federal Register. Fed Release. Proposed Rule.

CFTC and SEC Proposed Rules on Reporting by Investment Advisers

On January 26, the CFTC and the SEC proposed new rules to implement provisions of the Dodd-Frank Act to assist the Financial Stability Oversight Council in its assessment of systemic risk. The proposed SEC rule would require SEC-registered investment advisers that advise private funds to file Form PF with the SEC. The proposed CFTC rule would require commodity pool operators and CFTC-registered commodity trading advisors who are also SEC-registered investment advisers that advise one or more private funds to satisfy certain proposed CFTC filing requirements by filing Form PF with the SEC. Comments on the proposed rules must be submitted within 60 days after publication in the Federal register. SEC Rule.

FSOC Proposed Rule on Nonbank Financial Company Supervision

On January 18, the Financial Stability Oversight Council proposed a rule describing the criteria to be considered in determining whether a nonbank financial company is subject to supervision by the Board of Governors of the Fed. Under the Dodd-Frank Act, the FSOC is authorized to designate nonbank financial companies for enhanced supervision by the Board of Governors. The proposed rule is based on feedback received in response to an advance notice of proposed rulemaking regarding the designation criteria issued on October 6, 2010. Comments on the proposed rule must be received within 30 days after publication in the Federal Register. Treasury Release. Proposed Rule.