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
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