On July 6, the Securities and Exchange Commission (SEC) announced that it had voted to adopt rule amendments to establish an expedited review process for applications for exemption for funds under the Investment Company Act. The new process is intended to make the process of applying for more routine exemptions quicker and less expensive for applicants. Release.
On December 28, 2016, the New York State Department of Financial Services (“DFS“) announced that it has updated its proposed first‑in‑the‑nation cybersecurity regulation. The proposed regulation, which will be effective March 1, 2017, will require banks, insurance companies and other financial services institutions regulated by DFS to adopt a cybersecurity program by assessing its specific risk profile and designing a program to address these risks accordingly.
According to the DFS, “This updated proposal allows an appropriate period of time for regulated entities to review the rule before it becomes final and make certain that their systems can effectively and efficiently meet the risks associated with cyber threats.”
Among the changes made, the definition of “Exemptions” has been expanded to provide:
The updated proposed regulation will be finalized following a 30-day notice and public comment period. Press Release. DFS Assessment of Public Comments. DFS Summary. Proposed Regulation (As Revised).
On August 1, 2016, the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the Federal Housing Finance Agency and the Farm Credit Administration announced a final rule that contains certain exemptions for “certain commercial and financial end users from margin requirements for certain swaps not cleared through a clearinghouse.” The rule implemented without any changes the interim final rule from November 2015. Press Release. Press Release. Press Release. Press Release.
On May 30, 2016, the Council of the EU published a press release confirming that it has adopted a Regulation amending the Capital Requirements Regulation (Regulation 575/2013) (CRR) to extend an exemption from certain requirements for commodity dealers.
The expiry date for the exemption of commodity dealers from large exposure requirements and from own funds requirements has been pushed back under the amending Regulation from December 31, 2017 to December 31, 2020.
The CRR requires the European Commission to prepare reports on the prudential supervision of commodity dealers and of investment firms in general. Since the review is still underway, it is likely that new legislation that may be required would only be adopted after the initial expiry date for the exemption. The purpose of the extension is therefore to provide commodity dealers with a stable regulatory environment in the meantime.
The European Parliament adopted the amending Regulation on May 11, 2016. It will enter into force 20 days after its publication in the Official Journal of the EU (OJ).
The European Commission’s Delegated Regulation supplementing the Market Abuse Regulation (Regulation 596/2014) (MAR) as regards an exemption for certain third countries’ public bodies and central banks, the indicators of market manipulation, the disclosure thresholds, the competent authority for notifications of delays, the permission for trading during closed periods and types of notifiable managers’ transactions, was published in the Official Journal of the EU on 5 April 2016.
The Delegated Regulation specifies:
The Delegated Regulation enters into force on April 24, 2016 and will apply from July 3, 2016.
On March 23, 2016, the Council of the EU published an approved final compromise text of a proposed Regulation extending the Capital Requirements Regulation (Regulation 575/2013) (CRR) to extend certain exemptions for commodity dealers.
Under the CRR commodity dealers are exempt from large exposure and own funds requirements until December 31, 2017, the Council has agreed to extend these exemptions until December 31, 2020. The measure is designed to protect commodity dealers from an unstable regulatory environment in the short term. The Council considered that the application of large exposure and own funds requirements to commodity dealers should come as the result of a thoroughly reasoned decision rather than as a result of a lapsed exemption.
The proposed regulation now requires approval from the European Parliament and adoption by the Council. The Council Presidency confirmed with member states that they will support the extension, which was approved by the Parliament’s Committee on Economic and Monetary Affairs (ECON) on March 7, 2016. Press release.
On February 5, the SEC adopted amendments to the expiration dates in its interim final rules that provide exemptions under the securities laws for certain security-based swaps. Under the amendments, the expiration dates in the interim final rules will be extended to February 11, 2017. Release.
On December 12, the Fed, FDIC, CFPB, FHFA, NCUA and OCC issued a final rule that creates exemptions from certain appraisal requirements for certain higher-priced mortgage loans. The final rule provides that loans of $25,000 or less and certain “streamlined” refinancings are exempt from the Dodd-Frank Act appraisal requirements, which go into effect on January 18, 2014. Joint Release. Joint Final Rule.
On July 10, the Fed, the CFPB, the FDIC, the FHFA and the OCC issued a joint proposed rule which would create exemptions from certain appraisal requirements for a subset of higher-priced mortgage loans. The proposed rule would provide exemptions for: (i) transactions secured by existing manufactured homes and not land; (ii) certain “streamlined” refinancings; and (iii) transactions of $25,000 or less. Comments must be received on or before September 9. Joint Release. Proposed Rule.
