Merger limits. Rules implementing Section 622 of the Dodd-Frank Act, which prohibits a financial company from combining with another company if the ratio of the resulting company’s liabilities exceeds 10 percent of the aggregate consolidated liabilities of all financial companies, has been published by the Federal Reserve Board. The rule also clarifies that a financial company may continue to engage in securitization activities if it has reached the limit. The final rule is effective January 1, 2015. (11/5/2014) Federal Reserve Board press release.
Rules for systemically important financial market utilities. The Federal Reserve Board amended Regulation HH risk-management standards for financial market utilities that have been designated as systemically important by the Financial Stability Oversight Council and for which the Board has standard-setting authority. It has also made final revisions to part I of the Federal Reserve Policy on Payment System Risk, which is applicable to financial market infrastructures more generally, including those operated by the Federal Reserve Banks. The final rule and policy are effective December 31, 2014. (10/28/2014) Federal Reserve Board press release.
Income annuities in 401(k) plans. The Treasury Department issued guidance for the expanded use of income annuities in 401(k) plans. (10/24/2014) Treasury Department press release.