annual report

FSOC Annual Report

On April 30, the FSOC released its 2013 annual report required pursuant to the Dodd-Frank Act.  The report focuses on seven key themes:  (i) vulnerability to runs in wholesale funding markets that can lead to destabilizing fire sales; (ii) the reliance of the housing finance system on government and agency guarantees; (iii) operational risks; (iv) reliance on reference interest rates, including LIBOR; (v) resilience to interest rate risk; (vi) long-term fiscal imbalances; and (vii) U.S. sensitivity to possible adverse developments in foreign countries.  FSOC Report.

FSA Annual Report for 2011/12 Published

On 19 June 2012, the FSA published its Annual Report for 2011/12. The report is a key component of the FSA’s accountability framework. The report deals the performance of the FSA during 2011/12 and compares this against the priorities listed in its business plan. FSA Annual Report.

This will be the FSA’s last annual report before the Prudential Regulation Authority and the Financial Conduct Authority take over as ‘twin peak’ regulators in early 2013.

The FSA measures market cleanliness by looking at the level of abnormal price movements prior to company announcements. This declined from 21.2% in 2010 to 19.8% in 2011. The 2011 level is the lowest since 2003.

SEC Report on NRSROs

On September 30, the SEC issued its annual report, as required under the Dodd-Frank Act, summarizing its findings after examining the practices of credit rating agencies registered with the SEC as NRSROs and subject to SEC oversight. The concerns outlined in the report include, in some instances, apparent failures by NRSROs to: (i) follow rating methodologies and procedures; (ii) make timely and accurate disclosures; (iii) establish effective internal control structures for the rating process; and (iv) adequately manage conflicts of interest. SEC Release. SEC Report.