Developments in Securities Regulation, Corporate Governance, Capital Markets, M&A and Other Topics of Interest. MORE

The Federal Reserve Board has published an expected timeline for rulemaking activities in the first half of 2011.  In the January to March 2011 timeframe, some of the things the Fed expects to accomplish include:

  • The Board will assist the Financial Stability Oversight Council, or FSOC, in developing a Notice of Proposed Rulemaking regarding the FSOC’s authority to designate certain nonbank financial companies for enhanced, consolidated supervision by the Federal Reserve. (Dodd-Frank Act Section 113) 
  • The Board will contribute to the FSOC’s study on the Volcker Rule’s activity restrictions. (Dodd-Frank Act Section 619(b)) 
  • The Board will request comment on a proposed inter-agency rule to: prohibit incentive-based payment arrangements that encourage inappropriate risk taking by covered financial companies, and require the disclosure and reporting of certain incentive-based compensation information by covered financial companies. (Dodd-Frank Act Section 956) 

 In the April to June 2011 timeframe, some of the things the Fed expects to accomplish include:

  • The Board will issue a final inter-agency rule to prohibit incentive-based compensation arrangements that encourage inappropriate risk-taking by covered financial companies, and to require the disclosure and reporting of certain incentive-based compensation information by covered financial companies. (Dodd-Frank Act Section 956) 
  • The Board will request comment on changes to existing rules to implement the requirements of section 939A of the Dodd-Frank Act relating to use of credit ratings in agency rules. (Dodd-Frank Act Section 939A) 
  • The Board, along with other federal regulatory agencies, will issue a final inter-agency rule to implement the credit risk retention requirements applicable in connection with the issuance of asset-backed securities. (Dodd-Frank Act Section 941) 
  • The Board, along with other federal financial regulatory agencies, will request comment on a proposed inter-agency rule to implement the Volcker Rule’s restrictions on proprietary trading, hedge fund, and private equity fund activity by insured depository institutions and their affiliates. (Dodd-Frank Act Section 619) 
  • The Board, along with other Federal financial regulatory agencies, will request comment on a proposed rule to implement the Volcker Rule’s concentration limit, which prohibits a financial company from making an acquisition if the liabilities of the combined company would exceed 10 percent of the liabilities of all financial companies. (Dodd-Frank Act Section 622) 

 Check dodd-frank.com frequently for updates on the Dodd-Frank Act and other important securities law matters.