On 23 May 2011, the rules and interpretive guidance that the Commodity Futures Trading Commission (“CFTC”) and the Securities and Exchange Commission (“SEC”) jointly proposed on 27 April 2011 to further define key terms pertaining to the regulation of derivatives under Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act were published in the Federal Register.
Under the proposed rules and interpretive guidance, insurance products would not be considered to be swaps or security-based swaps. To qualify as “insurance” under the proposed rule and interpretive guidance, both the product and the entity providing the product must meet certain criteria. For more details on the criteria, please see our prior article, “Federal Regulators propose excluding certain insurance products from swap regulations”, from our April 2011 bulletin.
The CFTC and SEC have requested comments on all aspects of the proposed rules and the interpretive guidance. The comments should be submitted on or before 22 July 2011.
The jointly proposed rules and interpretive guidance are available here.