On January 30, 2020, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, the Securities and Exchange Commission, and the Commodity Futures Trading Commission proposed revisions to the covered funds provisions of the Volcker Rule. The proposal is intended to address the prohibitions and restrictions regarding covered fund activities in the same way that these agencies’ August 2019 rulemaking primarily focused on…

West LegalEdcenter Webinar February 24, 2020 1:00 – 2:00 PM Register here. Please join McCarthy Tetrault and Mayer Brown for this webinar on Canadian Bail-in and TLAC Requirements. During this session, we will address the Canadian federal rules relating to Bank Recapitalization (Bail-in) Conversion Regulations and Total Loss Absorbing Capacity (TLAC). Since the rules came into effect in September 2018, these rules have a significant impact on how the major Canadian banks (D-SIBs and…

On January 30, 2020, the US Securities and Exchange Commission provided guidance regarding the disclosure of key performance indicators and metrics used in the Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) section of SEC filings. This commission-level guidance, which reflects the SEC’s interpretation of existing MD&A requirements, becomes effective on the date of its publication in the Federal Register, which will make it applicable to annual reports on Form 10-K…

Nonbank financial companies, including residential mortgage real estate investment trusts (“mortgage REITs”), have expressed concern that nonbank residential mortgage lenders, servicers and purchasers might be subject to enhanced regulatory scrutiny and prudential standards by the Financial Stability Oversight Council (the “Council”) or increased state and federal regulation to head off action by the Council. Indeed, originating and servicing residential mortgage loans by nonbank mortgage originators and servicers appear to be on the Council’s radar. This…

In remarks last week, Securities and Exchange Commission Chair Clayton discussed the SEC’s proposed amendments to streamline and modernize the requirements for Management’s Discussion and Analysis (MD&A) disclosures.  The proposed amendments continue the SEC’s progress with its disclosure effectiveness initiative. Chair Clayton also commented on other areas of disclosure and rulemaking focus, including, among others:  (1) LIBOR transition; (2) cybersecurity and information system integrity and resilience; (3) environmental and climate-related disclosures; (4) the protection of…

FINRA’s 2020 Risk Monitoring and Examination Priorities Letter identifies a number of areas of focus for the examination program in the coming year.  Here we highlight particular areas of focus for capital markets practitioners: Private placement retail communications and online distribution platforms:  FINRA will review how member firms use social media and other platforms in connection with private placements, as well as other traditional retail communications in connection with private placements. IPO Share Sales:  FINRA…

Several key regulatory developments and reforms have the potential to significantly help business development companies (closed-end investment management companies that are specially regulated by the Investment Company Act of 1940). This article published in Bloomberg Law addresses those developments and how they are expected to impact the BDC industry. View the full article here.  …