United States

The LIBOR Transition – ARRC 2020 Best Practices for Completing the Transition from LIBOR

Following on our post discussing the ARRC’s publication of their 2020 Key Objectives, we mentioned that ARRC panned to release a set of recommended best practices. As promised, the ARRC has published guidance for Best Practices for Completing the Transition from LIBOR (“Best Practices Guidance”), along with an accompanying fact sheet, which sets forth recommended … Continue Reading

The LIBOR Transition – ARRC’s further consultation on spread adjustment methodologies and advice on the SOFR Index

By Patrick Dolan (US) and Kathleen Scott (US) on May 21, 2020 Posted in Banking, General, LIBOR, Regulation and compliance, United States

Following on our post discussing the ARRC’s recommendations outlining a spread adjusting procedure, we mentioned that the ARRC planned to release a more detailed final recommendation of the spread adjustment methodology for cash products. On May 6, 2020, the ARRC released a supplemental consultation seeking further views on certain technical questions for the spread adjustment … Continue Reading

US Issues Sanctions Guidance for International Maritime Operators – Five Key Points

By Kim Caine (US), Stefan H. Reisinger (US) and Katie McDougall (UK) on May 18, 2020 Posted in United States

On 14 May 2020, following engagement with the private sector, including UK based insurers, the U.S. Government issued new sanctions guidance for international maritime operators. The intent of the guidance is to provide those in the maritime industry, energy and metals sectors with further information and tools to counter current and emerging trends related to … Continue Reading

Monthly Global FinTech regulatory updater

Every month we provide the Global Blockchain Business Council’s Post-Trade Distributed Ledger group with a global regulatory FinTech updater, the latest version of which can be found here. Post Trade Distributed Ledger (PTDL) Group is composed of over 40 prominent market infrastructure stakeholders whose shared vision of the use of distributed ledger technology has brought … Continue Reading

US bank regulators issue cloud computing security guidance

By Susan Ross (US) and Kathleen Scott (US) on May 6, 2020 Posted in Banking, Fintech, General, Regulation and compliance, United States

On April 30, 2020, the US Federal Financial Institutions Examination Council (FFIEC), an interagency group of federal and state banking regulators, issued guidance on “Security in a Cloud Computing Environment.” The FFIEC guidance focuses on security risk management principles and the financial services sector’s use of cloud computing, and supplements its publications on outsourcing of … Continue Reading

New client briefing note – The Master-KVG: an attractive option post-AIFMD

By Caroline Herkströter and Martin Krause (DE) on May 5, 2020 Posted in Australia, Collective investment schemes, Collective Investment Schemes, Collective investment schemes, Collective investment schemes, Collective investment schemes, France, Funds management, Germany, Italy, The Netherlands, United Kingdom, United States

In order to sell their expertise to German institutional and retail investors, non-German asset managers must find ways to operate in the German investment market. This has become much more difficult under the Alternative Investment Fund Managers Directive. An attractive option is to cooperate with a German Master-KVG. We have recently published a new client … Continue Reading

FINRA (and selected SEC) regulatory matters at a glance: What compliance officers need to know

By Glen Barrentine (US) on May 4, 2020 Posted in Brokers and Intermediaries, Regulation and compliance, United States

Glen Barrentine is Of Counsel in the New York office of Norton Rose Fulbright. His practice focuses broadly on SEC regulated financial service clients, including broker-dealers, securities exchanges, municipal advisors and investment advisers. Glen frequency represents clients in connection with SEC and FINRA enforcement proceedings and other contentious regulatory inquiries, purchases and sales, and the … Continue Reading

SEC Proposes New Framework for Fund Valuation Practices

By Steven Howard (US), Andrew Lom (US) and Rachael Browndorf (US) on May 3, 2020 Posted in Asset management, General, Regulation and compliance, United States

On April 21, 2020, the Securities and Exchange Commission (“SEC”) proposed new Rule 2a-5 under the Investment Company Act of 1940 (the “1940 Act”) to “modernize” the framework for fund valuation practices applicable to mutual funds, business development companies and other “registered investment companies” under the 1940 Act (each, a “fund”). This framework has not … Continue Reading

Updated TALF term sheet released

By Patrick Dolan (US), Kathleen Scott (US) and Ryan Graham (US) on April 29, 2020 Posted in Banking, Coronavirus, General, Regulation and compliance, United States

On April 9, 2020, the Federal Reserve released an updated term sheet for the Term Asset-Backed Securities Loan Facility (“TALF”). Eligible borrowers under TALF (“Eligible Borrowers”) must now be U.S. companies that own eligible collateral and maintain an account relationship with a primary dealer. A “U.S. company” now is defined as a business that is … Continue Reading

The LIBOR Transition – ARRC 2020 Key Objectives

By Patrick Dolan (US) and Kathleen Scott (US) on April 29, 2020 Posted in Banking, General, LIBOR, Regulation and compliance, United States

Following up on our past posts on the transition away from the London Interbank Offering Rate (“LIBOR”), and other interbank offering rates (“IBOR”) denominated in other currencies, in this post, we discuss the key objectives for 2020 released by the Alternative Reference Rates Committee (“ARRC”), the group of private market participants advising the Federal Reserve … Continue Reading

The LIBOR Transition – ARRC issues recommendations outlining spread adjusting procedure

By Patrick Dolan (US), Kathleen Scott (US) and Claire Edwards (UK) on April 23, 2020 Posted in Banking, General, LIBOR, United States

Following up on our past posts on the transition away from the London Interbank Offering Rate (“LIBOR”), and interbank offering rates (“IBOR”) denominated in other currencies, in this post, we discuss the agreement reached by the members of the Alternative Reference Rates Committee (“ARRC”) on a spread adjustment methodology for cash products referencing U.S. dollar … Continue Reading

SEC Orders Third Ever Whistleblower Award to Compliance Officer

By Kevin Harnisch (US) and Ilana Sinkin (US) on April 22, 2020 Posted in Dodd-Frank, Enforcement, General, Regulation and compliance, Securities, United States

On March 30, 2020, the SEC ordered its third ever whistleblower award to a compliance officer in the amount of $450,000. In 2010, Congress passed the Dodd-Frank Wall Street Reform and Consumer Protection Act, which, among other things provided for the payment of monetary awards under certain circumstances to whistleblowers whose tips to the SEC … Continue Reading

Financial services regulation hub now available on the NRF Institute

In an increasingly complex and fast-paced regulatory environment, financial services firms must remain responsive to a wide range of evolving areas, whilst ensuring compliance with new laws and regulation. To help our clients stay up to date on regulatory change as it happens, we have created a new financial services regulation hub on the NRF … Continue Reading

The other side of the Volcker Rule: Proposed changes to the covered funds provisions

By Kathleen Scott (US) on April 21, 2020 Posted in Asset management, Banking, Dodd-Frank, General, Regulation and compliance, United States

In November 2019, the financial services regulators responsible for the Volcker Rule regulations (the Board of Governors of the Federal Reserve Board, the Office of the Comptroller of the Currency, the Commodity Futures Trading Commission, the Federal Deposit Insurance Corporation and the Securities and Exchange Commission, collectively, the “Agencies”) issued final rules revising the proprietary … Continue Reading

US AML compliance during the COVID-19 pandemic

By Kathleen Scott (US) on April 15, 2020 Posted in Banking, Coronavirus, Enforcement, General, Regulation and compliance, United States

The US anti-money laundering (AML) agency, the Financial Crimes Enforcement Network (FinCEN), has issued guidance regarding AML compliance for financial institutions during the current COVID-19 pandemic. This guidance would be in addition to any issuances from their respective functional regulators, if any. March 16 Guidance On March 16, 2020, FinCEN issued guidance requesting that financial … Continue Reading

FINRA (and selected SEC) regulatory matters at a glance: What compliance officers need to know

By Glen Barrentine (US) on April 7, 2020 Posted in Brokers and Intermediaries, Regulation and compliance, Securities, United States

Federal regulators suspend foreclosures and evictions for certain home owners

By Kathleen Scott (US), Patrick Dolan (US) and Ryan Graham (US) on April 6, 2020 Posted in Coronavirus, General, Regulation and compliance, United States

With the COVID-19 pandemic bringing the U.S. economy to a halt, residential mortgage servicers are bracing for widespread defaults as a result of the general economic shutdown. A recent projection from Moody’s estimates that approximately 30% of home loans could enter default if the economic shutdown continues through the summer. To alleviate pressure on borrowers, … Continue Reading

The LIBOR Transition – ARRC’s Recommended Fallback Contract Language – New Variable Rate Private Student Loans

By Patrick Dolan (US) and Kathleen Scott (US) on April 6, 2020 Posted in Banking, General, LIBOR, Regulation and compliance, United States

Following up on our past posts on the transition away from the London Interbank Offering Rate (“LIBOR”), and other interbank offering rates (“IBOR”) denominated in other currencies, in this post, we discuss the proposal from the Alternative Reference Rates Committee (“ARRC”) consultation on fallback contract language for new variable rate private student loans. This is … Continue Reading

Global Asset Management Quarterly – 14th edition now available online

By Richard Sheen (UK), Imogen Garner (UK) and Simon Lovegrove (UK) on April 6, 2020 Posted in Asia, Australia, Canada, Germany, Italy, The Netherlands, United Arab Emirates, United Kingdom, United States

The latest issue of Global Asset Management Quarterly is now available here. This issue contains the following articles: Europe European update Launch of IFR/IFD transition hub EU/UK regulatory roundup United Kingdom COVID-19: action points for boards to consider FCA Dear CEO letter: Asset management firms – prepare now for the end of LIBOR Extension of … Continue Reading

Monthly global FinTech regulatory updater

NYDFS Requires COVID-19 Plans by April 9

By Kathleen Scott (US) and Susan Ross (US) on April 2, 2020 Posted in Banking, Coronavirus, Fintech, General, Insurance, Insurance, Regulation and compliance, United States

On March 10, 2020, the New York Department of Financial Services (NYDFS) issued guidance to all of its regulated institutions engaged in virtual currency business activity, requiring them to have plans for preparedness to manage the possible operational and financial risks posed by the COVID-19 pandemic. NYDFS requires the plans to be submitted by Thursday, … Continue Reading

US banking regulators delay CECL adoption for some, but not all, banks

By Patrick Dolan (US), Kathleen Scott (US) and Ryan Graham (US) on April 2, 2020 Posted in Banking, Coronavirus, General, Regulation and compliance, United States

After industry groups stressed the need to adopt regulatory changes in light of the COVID-19 pandemic, on March 27, 2020, the Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation and Office of the Comptroller of the Currency (collectively, the “Banking Agencies”) issued a joint press release announcing an interim final rule … Continue Reading

US financial regulators establish webpages on the COVID-19 pandemic

By Kathleen Scott (US) on March 27, 2020 Posted in Asset management, Banking, Brokers and Intermediaries, Commodities & Derivatives, Coronavirus, General, Regulation and compliance, United States

The US financial regulatory, consumer protection and enforcement supervisors are regularly issuing press releases and statements concerning the COVID-19 pandemic. Each of them has established special links to provide information to the public on its response to the pandemic. Board of Governors of the Federal Reserve System: https://www.federalreserve.gov/covid-19.htm Commodity Futures Trading Commission: https://www.cftc.gov/coronavirus Conference of State … Continue Reading

Federal Reserve establishes Commercial Paper Funding Facility

By Patrick Dolan (US), Kathleen Scott (US) and Ryan Graham (US) on March 27, 2020 Posted in Asset management, Banking, Coronavirus, General, Securities, United States

As part of a comprehensive effort to alleviate strain on the commercial paper markets due to the COVID-19 pandemic, on March 17, 2020 the Board of Governors of the Federal Reserve System (the “Federal Reserve”) announced the creation of the Commercial Paper Funding Facility (“CPFF”). Similar to the CPFF program implemented in 2008, which was … Continue Reading