On November 29, pursuant to Section 939A of the Dodd-Frank Act, the OCC proposed a rule to remove references to credit ratings from various regulations and related guidance. In addition, the OCC issued proposed guidance on the procedures banks should follow in order to demonstrate that their investments satisfy the new credit quality standards created by the proposed rule. Comments must be submitted by December 29. OCC Release. OCC Proposed Rule. OCC Proposed Guidance.
Dodd-Frank Act
Multi-Agency Statement on Supervisory and Enforcement of Consumer Financial Laws
On November 17, the Fed, Consumer Financial Protection Bureau, FDIC, NCUA, and OCC issued a supervisory statement to provide clarity and transparency as to the determination of the total assets of an insured depository institution or an insured credit union for the purposes of supervision and enforcement responsibilities under Sections 1025 and 1026 of the Dodd-Frank Act. The agencies have indicated that they will use the total assets reported in a depository institution’s required quarterly reports of condition, or Call Reports to determine an institution’s asset size for these purposes and that they will follow the FDIC’s deposit insurance assessment methods to determine whether an institution should be classified as a “Large Institution”. Multi-Agency Release. Supervisory Statement.
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.
OCC Issuance on Revision of Appeals Procedures
On November 1, pursuant to Section 316 of the Dodd-Frank Act, the OCC released an issuance revising the procedures for national banks to appeal agency decisions and actions to include federal savings associations. Issuance.
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.
Federal Insurance Office Request for Comments on Insurance Regulation
On October 17, Treasury’s Federal Insurance Office requested comments to assist it in conducting a study and preparing a report, as mandated by the Dodd-Frank Act, on how to modernize and improve insurance regulation. Comments must be submitted by December 16. Treasury Release. Request for Comment.
CFTC Final Rules on Position Limits for Futures and Swaps
On October 18, pursuant to Section 737 of the Dodd-Frank Act, the CFTC adopted final rules requiring limits on speculative positions in 28 core physical commodity contracts and their economically equivalent futures, options, and swaps. The position limits established under the final rules will be effective 60 days after the term “swap” is further defined by CFTC rulemaking. CFTC Fact Sheet.
CFTC Rule on Derivatives Clearing Organization General Provisions
On October 18, pursuant to Section 725(c) of the Dodd-Frank Act, the CFTC adopted final rules establishing standards for compliance with certain core principals applicable to derivatives clearing organizations (DCOs). The CFTC also adopted rules requiring DCOs to designate a Chief Compliance Officer, and rules revising the DCO registration application. CFTC Fact Sheet.
Fed and FDIC Rule on Resolution Plans
On October 17, the Fed and the FDIC adopted a final rule to implement the resolution plan requirement of Section 165(d)(1) of the Dodd-Frank Act. Companies with $250 billion or more in non-bank assets will be required to submit an initial plan by July 1, 2012; companies with non-bank assets ranging from $100-$250 billion must submit an initial plan by July 1, 2013; and companies subject to the rule with less than $100 billion in non-bank assets must submit an initial plan by December 31, 2013. The rule will be effective on November 30. Joint Release. Final Rule.
Regulation of Investment Advisers to Real Estate Funds in the Wake of the Dodd-Frank Act
Sponsors of private real estate funds may be subject to new federal registration requirements because of recent regulatory changes effected by the Dodd-Frank Act and companion SEC regulations. Click here to read more.