Agencies Approve Interim Final Rule Authorizing Retention of Interests in and Sponsorship of Collateralized Debt Obligations Backed Primarily by Bank-Issued Trust Preferred Securities
Five federal agencies on Tuesday approved an interim final rule to permit banking entities to retain interests in certain collateralized debt obligations backed primarily by trust preferred securities (TruPS CDOs) from the investment prohibitions of section 619 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, known as the Volcker rule. Under the interim final rule, the agencies permit the retention of an interest in or sponsorship of covered funds by banking entities if the following qualifications are met: the TruPS CDO was established, and the interest was issued, before May 19, 2010; the banking entity reasonably believes that…
Read MoreSEC Announces New Date for Compliance with Final Municipal Advisor Registration Rules
The Securities and Exchange Commission today announced that compliance with the final municipal advisor registration rules will not be required until July 1, 2014, the date on which the first set of municipal advisors will be required to register under the final rules. The Commission, while balancing the goals of enhancing the quality of municipal securities advice and protecting investors and municipalities in the municipal securities market, took this action to give market participants additional time to analyze, implement, and comply with the final rules. The Commission approved the final rules last year under the Dodd-Frank Act to provide an effective municipal advisor registration regime. The rules require municipal…
Read MoreInterpretive Guidance on Municipal Advisor Registration Rules
The Securities and Exchange Commission today announced that its Office of Municipal Securities has issued interpretive guidance to address questions from market participants regarding the implementation of new final SEC rules requiring municipal advisors to register with the SEC. The staff guidance, in the form of answers to frequently asked questions, or FAQs, covers topics including: the advice standard, including the general information exclusion and the treatment of business promotional materials used by underwriters the request for proposals-request for qualifications exemption the exemption for independent municipal advisors the exclusion for registered investment advisers the underwriter exclusion, including engagements as underwriters…
Read MoreMyron Marlin, Director of Communications, to Leave SEC
The Securities and Exchange Commission today announced that Myron Marlin will be leaving the SEC after nearly five years as communications director, serving under chairs Mary Jo White, Elisse B. Walter, and Mary L. Schapiro. Since joining the SEC in March 2009, Mr. Marlin coordinated communications strategy on a range of significant issues including the agency’s landmark policy of seeking admissions in certain enforcement settlements and major rulemakings stemming from the Dodd-Frank Act and the JOBS Act. “Myron is an extraordinary professional and advisor,” said Chair White. “His substantial knowledge of the agency, judgment, and keen sense of effective communications…
Read MoreSEC Announces 2014 Examination Priorities
The Securities and Exchange Commission today announced its examination priorities for 2014, which cover a wide range of issues at financial institutions, including investment advisers and investment companies, broker-dealers, clearing agencies, exchanges and other self-regulatory organizations, hedge funds, private equity funds, and transfer agents. “We are publishing these priorities to highlight areas that we perceive to have heightened risk,” said Andrew J. Bowden, Director of the SEC’s Office of Compliance Inspections and Examinations. “This document, along with our Risk Alerts and other public statements, help us to increase transparency, strengthen compliance, and inform the public and the financial services industry…
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