Corporate & Financial Weekly Digest

Corporate & Financial Weekly Digest

FIA Publishes Report on Clearing Members’ Brexit Implementation Plans

Posted in Brexit, EU Developments, Financial Markets

On June 5, the Futures Industry Association (FIA) published a report summarizing the responses to its latest survey and setting out its recommendations to United Kingdom (UK) and European Union (EU) policymakers. The survey concerns Brexit implementation plans for the client clearing businesses of FIA members. Continue Reading

Dodd-Frank Legislation Directs SEC to Amend Rule 701 and Regulation A+

Posted in SEC/Corporate

On May 24, President Trump signed into law the Economic Growth, Regulatory Relief and Consumer Protection Act. While the Act primarily serves to relieve smaller financial institutions from the burden of complying with certain requirements under the Dodd-Frank Wall Street Reform and Consumer Protection Act, the Act also directs the Securities and Exchange Commission to adopt amendments to Rule 701 under the Securities Act of 1933 (Securities Act) and so-called “Regulation A+,” as summarized below.   Continue Reading

CFTC Announces Open Commission Meeting on June 4

Posted in CFTC

The Commodity Futures Trading Commission will hold a meeting on June 4 at 9:30 a.m. (ET), which will be open to the public. The meeting will cover the following topics:

  • Final Rule: Indemnification (Amendments to the Swap Data Access Provisions of Part 49 and Certain Other Matters);
  • Proposed Rule: Volcker Rule (Revisions to Prohibitions and Restrictions on Proprietary Trading and Certain Interests in, and Relationships With, Hedge Funds and Private Equity Funds);
  • Proposed Rule: De Minimis Exception (Amendments to Swap Dealer Registration De Minimis Exception); and
  • Establishment of Subcommittees for the CFTC Technology Advisory Committee.

The meeting will take place at the CFTC headquarters, and a live webcast will be offered. More information is available here.

Economic Growth, Regulatory Relief and Consumer Protection Act

Posted in Banking

On May 24, Public Law No. 115-74 was signed by President Trump. The law, also known as the Economic Growth, Regulatory Relief and Consumer Protection Act, has six parts:

  • Title I—Improving Consumer Access to Mortgage Credit
  • Title II—Regulatory Relief and Protecting Consumer Access to Credit
  • Tile III—Protections for Veterans, Consumers and Homeowners
  • Title IV—Tailoring Regulations for Certain Bank Holding Companies
  • Title V—Encouraging Capital Formation
  • Title VI—Protections for Student Borrowers

Continue Reading

Regulators Propose Changes to Volcker Rule

Posted in Banking

On May 30, the five Federal regulators responsible for the Volcker Rule approved the publication for comment of numerous proposed changes to the rule. The notice of proposed rulemaking, entitled Proposed Revisions to Prohibitions and Restrictions on Proprietary Trading and Certain Interests in, and Relationships With, Hedge Funds and Private Equity Funds, was jointly developed by the Federal Reserve Board, the Commodity Futures Trading Commission, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, and the Securities and Exchange Commission. The proposed changes are intended to streamline the rule by eliminating or modifying requirements that are not necessary to effectively implement the statute, without diminishing the safety and soundness of banking entities. Continue Reading

ECON Publishes Report on EMIR 2.2

Posted in EU Developments, Financial Markets

On May 25, the European Parliament’s Economic and Monetary Affairs Committee (ECON) published a report on the proposal for a regulation amending the European Securities and Markets Authority (ESMA) Regulation, and the European Market Infrastructure Regulation (EMIR) in relation to the authorization of central counterparties (CCPs) and recognition of third-country CCPs (EMIR 2.2). Continue Reading

ESMA Guidelines on EMIR Anti-Procyclicality Margin Measures for CCPs

Posted in EU Developments, Financial Markets

On May 28, the European Securities and Markets Authority (ESMA) published its final report with guidelines on the European Market Infrastructure Regulation (EMIR) anti-procyclicality margin measures for central counterparties (CCPs). The guidelines aim to establish consistent, efficient and effective supervisory practices and to ensure a common, uniform and consistent application of EMIR in order to limit procyclicality of CCP margins.

Coverage of the consultation phase for the guidelines is contained in the January 12 edition of Corporate & Financial Weekly Digest. The final report includes details of the feedback ESMA received in relation to the consultation.

ESMA’s final report is available here.

ESMA’s accompanying press release is available here.

MiFID II/MiFIR Q&As Updated and Guidelines Published on MiFID II Suitability Requirements

Posted in EU Developments, Financial Markets

The European Securities and Markets Authority (ESMA) recently updated its questions and answers on the following topics:

  • On May 29, the revised Markets in Financial Instruments Directive (MiFID II) Q&As on transparency and market structures topics (available here and here, respectively one for transparency and one for market structures). Among other things, ESMA clarifies how it expects post-trade data to be published 15 minutes after publication free of charge and in an easily accessible manner that can be easily copied. Data published by approved publication arrangements and consolidated tape providers must be in a machine readable format; and
  • On May 25, Q&As on data reporting under the Markets in Financial Instruments Regulation (MiFIR), (available here). The Q&As clarify the requirements for submission of transaction reports and reference data under MiFIR, particularly in relation to complex trades and national client identifiers for natural persons.

On May 28, ESMA also published guidelines on MiFID II suitability requirements (available here). Investment firms providing investment advice or portfolio management must, under MiFID II and its delegated regulation, provide suitable personal recommendations to their clients or make suitable investment decisions on behalf of their clients.

ESMA’s accompanying press releases are available here, here and here respectively.

MiFID II/MiFIR Q&A Updates Concerning Best Execution and Client Categorization

Posted in EU Developments, Financial Markets

On May 25, the European Securities and Markets Authority (ESMA) updated its questions and answers on the revised Markets in Financial Instruments Directive (MiFID II) and Markets in Financial Instruments Regulation (MiFIR) investor protection and intermediaries topics, with nine new or updated Q&As. Continue Reading

FINRA Publishes Information Notice Regarding Enhancements to the Disclosure Review Process Relating to Public Financial Records

Posted in Broker-Dealer

On May 18, the Financial Industry Regulatory Authority (FINRA) published an Information Notice regarding enhancements to FINRA’s disclosure review process (Information Notice). The enhancements will allow member firms to rely on FINRA’s verification process to comply with the requirement to conduct public searches related to bankruptcies, judgments and liens. Beginning on July 9, FINRA will conduct a public records search within 15 calendar days of an applicant’s submission of a Form U4 and then provide member firms with any information that is different than what was reported on the aforementioned form. Such enhancements are intended to (1) reduce member firm costs related to public record checks; (2) result in the more timely reporting of certain disclosure information; and (3) reduce the late disclosure fees related to judgments and liens.

A copy of the Information Notice is available here.