SEC Proposed Rule on Money Market Reform
On June 5, the SEC proposed two alternatives for amending rules that govern money market mutual funds under the '40 Act. The alternatives would (i) require money market funds to sell and redeem shares based on the current market-based value of the securities in their underlying portfolios (transact at a floating NAV) or (ii) require money market funds to impose a liquidity fee if the fund's liquidity levels fell below a certain threshold and permit the fund to temporarily suspend redemptions under that scenario. Comments on the proposed rule must be submitted within 90 days of publication in the Federal Register. SEC Release. SEC Proposed Rule.
FDIC Final Rule on Orderly Liquidity Authority
On June 4, the FDIC adopted a final rule which establishes the criteria for determining if a company is engaged in "activities that are financial in natural or incidental thereto" for purposes of being subject to the orderly liquidation authority under the Title II of the Dodd-Frank Act. FDIC Memo. FDIC Final Rule.
FDIC Credit Risk Assessment Report
On June 6, the FDIC released a report which discusses the credit risk assessments that banks must now apply to investment portfolios. FDIC Release.
CFTC No-Action Relief
On June 4, the CFTC issued a no-action letter providing relief from the clearing requirement for swaps entered into by eligible treasury affiliates. An eligible treasury affiliate electing the relief described in the no-action letter must report certain information to a registered swap data repository or the CFTC; however, the election is not required to be reported until September 9, 2013. CFTC Release. No-Action Letter.
CFPB Exam Procedures for New Mortgage Rules
On June 4, the CFPB published an update to its exam procedures for the new mortgage regulations issued in January 2013 relating to appraisals, escrow accounts, and compensation and qualifications for loan originators. CFPB Release. Interim TILA Procedures. Interim ECOA Procedures.