Edited by: Eric R. Fischer, Jackson B.R. Galloway and Elizabeth Shea Fries
In This Issue:
- FDIC Issues Guidance Regarding the Scheduled December 31, 2012 Expiration of Temporary Unlimited FDIC Insurance Coverage for Noninterest-Bearing Transaction Accounts
- SEC Preparing Filing Deadline Relief for Those Affected by Hurricane Sandy
- Financial Services Quarterly
FDIC Issues Guidance Regarding the Scheduled December 31, 2012 Expiration of Temporary Unlimited FDIC Insurance Coverage for Noninterest-Bearing Transaction Accounts
Section 343 of the Dodd-Frank Act established the Transaction Account Guarantee ("TAG") program that provides separate, unlimited FDIC insurance coverage for noninterest-bearing transaction accounts until December 31, 2012. Unless Congress acts to extend the TAG program, such unlimited FDIC deposit insurance coverage of noninterest-bearing transaction accounts will expire on January 1, 2013, and such accounts will be insured up to the standard maximum deposit insurance amount of $250,000 for each deposit ownership category. Although community banks have advocated for an extension of the TAG program, the FDIC issued a Financial Institution Letter, FIL-45-2012, (the "FIL") to provide guidance to institutions in the event the TAG program expires as scheduled.
Although the Dodd-Frank Act imposes no specific notice requirement for institutions in connection with the expiration of the TAG program, in the FIL the FDIC encourages institutions, "as a matter of prudent commercial practice," to notify their affected depositors about the pending expiration and the impact that expiration will have on the institution's deposit insurance coverage. The FIL provides that institutions may use any reasonable method of providing reminders to depositors, such as individual written notices to each [noninterest-bearing transaction account] depositor or notices on regular account statements and includes model language for either a separate notice to depositors or a notice to be included on regular account statements.
The FIL further provides that institutions must remove the required notices of the TAG program coverage from their main offices, branches, and Web sites, and should remove any other notices that they may have made available to customers, no later than January 2, 2013. Additionally, the FIL requires institutions to review all of their account agreements and disclosure statements used in connection with noninterest-bearing transaction accounts to ensure that these documents accurately reflect FDIC insurance coverage for these accounts as of January 1, 2013. The FIL states that such review and necessary adjustments to account documentation should be completed promptly upon expiration of the TAG program.
The FDIC notes in the FIL that in accordance with applicable state law, sufficient collateral should be set aside to secure accounts of government depositors to the extent those accounts exceed $250,000 after December 31, 2012. Moreover, the FIL sets forth changes to call reports pertaining to noninterest-bearing transaction accounts effective for the March 31, 2013 call reports.
Finally, the FDIC states that it will provide additional guidance to institutions should Congress extend the TAG program or otherwise modify the deposit insurance coverage for noninterest-bearing transaction accounts.
SEC Preparing Filing Deadline Relief for Those Affected by Hurricane Sandy
The SEC announced that in response to Hurricane Sandy and its aftermath the SEC staff is preparing relief measures that are expected to include extensions of filing deadlines for any filing due during the period from October 29, 2012 to November 20, 2012 for publicly traded companies, investment companies, investment advisers, other persons with filing obligations, accountants, brokerage firms, and transfer agents, among others. The announcement stated that "[i]t is anticipated that the deadline for any such filing would be extended to November 21, 2012, and the scope of the relief measures would extend to any individual and entity with a filing obligation that cannot file timely due to Hurricane Sandy and its aftermath. The staff will also consider requests for additional relief on a case-by-case basis."
Financial Services Quarterly
August 14, 2012
FRB, FDIC and OCC Extend Comment Period on Regulatory Capital Proposals
SEC Issues Report on Municipal Securities Market
CFTC/SEC Product Definition Rules Published in Federal Register to be Effective on October 12, 2012
August 21, 2012
Goodwin Procter Issues Client Alert Regarding New Iran Sanctions
The new SEC sanctions-related activities disclosure requirements take effect for any quarterly or annual report filed after February 6, 2013.
CFTC and SEC Publish Final Definitions of "Swap" and "Security-Based Swap"
OFAC Holds U.S. Investment Manager Accountable for Actions of Foreign Subsidiary and Agent
CFTC Provides Guidance to CPOs and CTAs
CFTC Proposes Clearing Exemption for Swaps Between Certain Affiliates
CFTC Grants Temporary No-Action Relief to Persons Eligible for the Trade Option Exemption
August 28, 2012
SEC Chair: Money Market Fund Reforms Will Not be Proposed for SEC Approval
OCC Issues Handbook Booklet on Banks' Management of Unique and Hard-to-Value Assets
September 4, 2012
Issuers must comply with the new conflict minerals disclosure requirements for the calendar year beginning January 1, 2013, with the first reports due May 31, 2014. Resource extraction issuers must comply with the new payment disclosure requirements for fiscal years ending after September 30, 2013.
NFA Proposes Registration Requirement for "Swaps Firms"
CFTC Approves Final Rule Imposing Standards for Swap Dealers and Major Swap Participants
The compliance schedule for the final rules, whose earliest date is November 13, 2012, is provided in the adopting release published in the Federal Register.
September 11, 2012
No-Action Relief under Advisers Act Custody Rule for 529 Plan Program Managers
SEC Issues Study Regarding Retail Investor Financial Literacy
September 18, 2012
Government Accountability Office Issues Report Assessing Financial Stability Oversight Council
The effective date for new FINRA Rule 5123 is December 3, 2012.
SEC Submits Credit Rating Standardization Study to Congress
FDIC Issues Guidance on Credit Risk Management for Purchased Loan Participations
CFTC Issues FAQ on Timing of Swap Dealer Registration
September 25, 2012
Basel III Implications for Residential Mortgage Lending
Mutual Fund Directors Forum Issues Guidance on Proxy Voting Oversight
SEC Further Extends Temporary Registration Program for Municipal Advisors
October 2, 2012
OCC Issues Guidance on How Banks May Use SBICs to Expand Their Small-Business Finance Activities
Comment period is open until November 26, 2012.
Federal Court Vacates and Remands CFTC Position Limits Rule
FDIC Issues New Classification System for Citing Consumer Compliance Violations
October 9, 2012
CFTC Chairman Suggests Timeline for Future Dodd-Frank Regulations
CFTC Issues Guidance to FCMs on Omnibus Accounts
FINRA Proposes Amendments to Research Analyst Rules to Conform with Requirements of the JOBS Act
Comments are due November 7, 2012.
October 16, 2012
CFTC Issues Range of Swaps-Related Interpretive Guidance and No-Action Relief
CFTC Provides Temporary No-Action Relief from Registration Requirements Arising from Swaps
The Final Rule is effective November 15, 2012.
SEC Issues Report on Broker-Dealer Insider Trading Prevention Practices
SEC Examination Staff Announces "Presence Exam" Strategy For Newly Registered Private Fund Advisers
Reminder: European Short Selling Regulation Effective November 1 Applies to US Persons
October 23, 2012
OCC Issues Guidance Regarding Community Bank Stress Tests
FRB Approves First SLHC Deregistration Request Based on Section 604(i) of Dodd-Frank
SEC Staff Issues Legal Bulletin on Shareholder Proposals
Goodwin Procter Alert: New Iran Sanctions Law Closes Foreign Subsidiary Loophole
New ERISA Litigation Update Available
October 30, 2012
The Final Rule is effective on July 1, 2013.
IRS Announces Modification of Certain Timelines for Due Diligence and Other Requirements under FATCA
CFTC Proposes New Regulations for FCMs and DCOs Designed to Protect Customer and Other Assets
CFTC Issues Interpretive Guidance Regarding Swap Data Repositories and Non-US Regulators
SEC Adopts Standards for Risk Management and Operations of Clearing Agencies
Independent Directors Council Issues Report on Board Oversight of Exchange-Traded Funds
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