09.07.2011

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Updates

The CFTC Adopts New Whistleblower Rules

On Thursday, August 25, 2011, the Commodity Futures Trading Commission (the “CFTC”) adopted final rules and new forms to implement Section 23 of the Commodity Exchange Act (the “CEA”) as amended by Section 748 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”).  Section 23, entitled “Commodity Whistleblower Incentives and Protection,” established a whistleblower program that requires the CFTC to pay an award, under regulations prescribed by the CFTC and subject to certain limitations, to eligible whistleblowers who voluntarily provide the CFTC with original information about a violation of the CEA that leads to the successful enforcement of a covered judicial or administrative action, or a related action.  The Dodd-Frank Act also prohibits retaliation by employers against individuals who provide the CFTC with information about possible CEA violations.

Read the CFTC rule

The Fed Proposes New Rules for Securities Holding Companies to be Regulated by the Fed

On Wednesday, August 31, 2011, the Federal Reserve Board (the “Board”) proposed rules to implement section 618 of the Dodd-Frank Act.  Section 618 permits foreign nonbank companies that own at least one registered securities broker or dealer operating in the United States, and that are thereby required by a foreign regulator or a provision of foreign law to be subject to comprehensive consolidated supervision within the United States, to register with the Board and subject themselves to supervision by the Board.  The proposed rule outlines the requirements that a securities holding company must satisfy to make an effective election, including filing the appropriate form with the responsible Reserve Bank, providing all additional required information, and satisfying the statutory waiting period of 45 days or such shorter period the Board determines appropriate.

Read the Federal Reserve Board press release

The SEC Considers Amending Regulations of Asset-Backed Securities

On Wednesday, August 31, 2011, the SEC announced that it is considering proposing amendments to Rule 3a-7 under the Investment Company Act of 1940.  Rule 3a-7 provides certain asset-backed securities issuers with a conditional exclusion from the definition of investment company.  Amendments to Rule 3a-7 that the SEC may consider could reflect market developments since 1992, when Rule 3a-7 was adopted, and recent developments affecting asset-backed issuers, including the passage of the Dodd-Frank Act and the SEC’s recent rulemakings regarding the asset-backed securities markets.  The Commission is withdrawing its 2008 proposal to amend Rule 3a-7, which was published at 73 FR 40124 (July 11, 2008).

Read the SEC press release

The CFTC Adopts Regulations for Registered Swap Data Repositories

On Wednesday, August 31, 2011, the CFTC adopted regulations to implement Section 21 of the CEA, as amended by Section 728 of the Dodd-Frank Act.  Section 21 establishes registration requirements, statutory duties, core principles and certain compliance obligations for registered swap data repositories.

Read the CFTC rule

The SEC Seeks Public Comments on Retrospective Review of Existing Regulations

On Tuesday, September 6, 2011, the SEC announced that it will seek public comment on a plan to conduct retrospective reviews of its existing regulations.  Specifically, the SEC is seeking public comment on the process it should use to conduct retrospective reviews, such as how often rules should be reviewed, the factors that should be considered, and ways to improve public participation in the rulemaking process.  President Barack Obama issued an order on July 11 that recommended that independent regulatory agencies consider how they might best analyze rules that may be outmoded, ineffective, or excessively burdensome, and modify, streamline, or repeal them.  The order also recommends analysis of regulations that might need to be strengthened or modernized, which may entail new rulemaking.

Read the SEC Press Release

© 2011 Perkins Coie LLP


 

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