United States: Financial Regulatory Developments Focus - 28 April 2014

In this newsletter, we provide a snapshot of the principal European, US and global financial regulatory developments of interest to banks, investment firms, broker-dealers, market infrastructures, asset managers and corporates.

Our latest quarterly Governance & Securities Law Focus newsletter is available at: http://www.shearman.com/~/media/Files/NewsInsights/Publications/2014/04/Governance-and-Securities-Europe-Bulletin-CMAM-041014.pdf.

Derivatives CFTC Staff Issues Time-Limited No-Action Letter on the Applicability of Oral Recording Requirements

On 25 April 2014, the US Commodity Futures Trading Commission's ("CFTC") Division of Swap Dealer and Intermediary Oversight and Division of Market Oversight ("Divisions") issued a time-limited no-action letter that provides relief to commodity trading advisors that are members of designated contract markets or swap execution facilities. The relief covers the oral recording requirement set forth in CFTC Regulation 1.35(a), in connection with the execution of swaps. The letter extends no-action relief that previously was granted by the Divisions in CFTC Letter Nos. 13-77 and 14-33.

The letter issued on 25 April will expire on 31 December 2014.

The CFTC no-action letter is available at:


Regulatory Capital OCC Proposes Increase in Assessments for National Banks and Federal Savings Associations with Total Assets of More Than $40 Billion

On 28 April 2014, the US Office of the Comptroller of the Currency ("OCC") published a notice of proposed rulemaking in the Federal Register seeking comment on a proposal to raise assessments on national banks and federal savings associations with total assets over $40 billion.

Under the proposal, the marginal assessment rate for national banks and federal savings associations ("FSAs") with more than $40 billion in assets would increase by 14.5 percent beginning 30 September 2014. The increase in assessments would range from 0.32 percent to 14 percent, depending on the total assets of the institution as reflected on its 30 June 30 2014 Consolidated Report of Condition and Income. The average increase in assessments for affected banks and FSAs would be 12 percent. The proposal would not increase assessment rates for banks and FSAs with $40 billion or less in total assets.

Comments on the notice are requested by 12 June 2014. The proposal also requests comment on a conforming amendment to 12 C.F.R. part 8 to make it consistent with the proposed increase in assessments. The proposal would also amend part 8 to add a reference to section 318 of the Dodd-Frank Act, which reaffirmed the OCC's broad discretion to set assessments and to determine the assessment methodology. The proposal would update 12 C.F.R. 8.8 to reflect the current title of the Notice of Fees and Assessments.

The OCC's notice of proposed rulemaking is available at:


Financial Services European Commission Begins Level 2 Process for MiFID II

On 24 April 2014, the European Commission published a request to the European Securities and Markets Authority ("ESMA") seeking technical advice for the preparation of the delegated and implementing acts required under the revised Markets in Financial Instruments Directive II ("MiFID II Directive") and Markets in Financial Instruments Regulation ("MiFIR") (together known as MiFID II). The MiFID II Directive covers market structure, exemptions from regulation, organizational and conduct of business requirements for investment firms and trading venues, powers of national regulators, sanctions, and rules for third-country (non-EEA) firms operating through a branch in the EU. MiFIR sets out requirements for trade transparency, a trading obligation for investment firms trading shares, the mandatory trading of derivatives on organized venues and the provision of services by third-country firms with or without a branch and confers a number of new powers on national regulators, ESMA and the European Banking Authority. Much of the detail of the primary legislation will be set out in Level 2 measures such as implementing and delegated acts, including technical standards. ESMA's deadline to deliver the technical advice has been set to six months after the entry into force of MiFID II, which is estimated to take place in June 2014.

The Commission's request is available at:


ECB Cooperation Framework Regulation for SSM

On 25 April 2014, the European Central Bank ("ECB") published a Regulation which sets out the framework for cooperation between the ECB and national regulators under the Single Supervisory Mechanism ("SSM"). The SSM provides for the prudential supervision of Eurozone banks (and banks of other member states that opt into the SSM) under the ECB in cooperation with national regulators, with the ECB being responsible for direct supervision of banks that are considered significant. The ECB Regulation sets out the methodology and procedures for assessing whether a bank is a significant bank and the cooperation and exchange of information between the ECB and national regulators. The Regulation was adopted by the ECB on 16 April 2014 and will come into force on the twentieth day following its publication in the Official Journal of the EU. The Regulation is available at:


European Commission Adopts Equivalence Decisions on Credit Rating Agency Regulation

On 28 April 2014, the European Commission announced that it had adopted five equivalence decisions which confirm that the rules in Argentina, Brazil, Hong Kong, Mexico and Singapore are equivalent to the EU rules on credit rating agencies. Credit rating agencies in those countries will be able to apply for EU certification so that their ratings can be used by EU financial institutions for regulatory purposes. The European Commission adopted equivalence decisions for the US, Canada and Australia in October 2012.

The announcement and provisional text of the decisions is available at:


New UK Complaints Commissioner Appointed

On 25 April 2014, the Bank of England and the Financial Conduct Authority ("FCA") announced that Anthony Townsend will be the new Complaints Commissioner from 1 May 2014. He will be responsible for the final stage of investigations into complaints against how the Bank of England and the FCA exercise their functions. Currently Mr. Townsend is Chair of the UK and Ireland Regulatory Board of the Royal Institute of Chartered Surveyors.

The FCA press release is available at:


FCA Appoints Two New Advisers

David Saunders and Gunner Burkhart have been appointed as senior advisers at the FCA. David Saunders, formerly chief executive of the Competition Commission, will work with the competition department and the new Payment Services Regulator (once operational). Gunner Burkhart, former managing director of Nomura International, will advise on wholesale and markets issues.

The FCA press release is available at:


Mauri Osheroff to Retire After Nearly 40 Years at SEC

On 23 April, 2014, the US Securities and Exchange Commission ("SEC") announced that Mauri L. Osheroff, associate director for regulatory policy in the Division of Corporation Finance, is retiring on 30 April after nearly 40 years at the SEC.

New Secretary General for Basel Committee

On 23 April 2014, the Basel Committee on Banking Supervision announced the appointment of William Coen as its next Secretary General, for an initial term of three years. Mr. Coen will also serve as the Chairman of the Basel Committee's Policy Development Group.

The press release is available at:


The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Similar Articles
Relevancy Powered by MondaqAI
In association with
Related Topics
Similar Articles
Relevancy Powered by MondaqAI
Related Articles
Related Video
Up-coming Events Search
Font Size:
Mondaq on Twitter
Mondaq Free Registration
Gain access to Mondaq global archive of over 375,000 articles covering 200 countries with a personalised News Alert and automatic login on this device.
Mondaq News Alert (some suggested topics and region)
Select Topics
Registration (please scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions