Finance Advisory: Greek Bailout, SEC Enforcement, FHFA, Whistleblowers, Money Laundering, Basel III, FATCA, and More

[Link: Greece's Lawyer: EU Bailout Will Cost Trillion Euros & Cyprus Is Next - Bloomberg Law]

For your reference, here’s a roundup of recent noteworthy advisories and updates on a wide range of finance, banking, and related matters, as published mid-week on JD Supra by leading lawyers and law firms. You should know:

Government Enforcement Update: Whistleblower Incentives; Changes to the SEC’s ‘Neither Admit Nor Deny’ Policy; Difficulties of Multijurisdictional Settlements (Skadden Arps)

“Under the new whistleblower program established by the Dodd-Frank Wall Street Reform and Consumer Protection Act, the SEC is required to pay monetary awards to whistleblowers who voluntarily provide original information that leads to a successful enforcement action yielding sanctions of more than $1 million. The program took effect on August 12, 2011, and the SEC received 334 tips by September 30 — about seven tips per day. Thirteen of those tips, or approximately 4 percent, involved alleged FCPA violations. The SEC recently reported that it continues to receive the same daily average of tips, two to three of which merit investigation. The agency also reported that the quality of tips has increased, which is likely due to two factors…” Read on>>

Investment Advisers to ERISA Plans and Plan Asset Funds Will Be Subject to New Disclosure Obligations Effective July 1, 2012 (Proskauer)

“The Final Regulations require that the disclosures be made reasonably in advance of the date that the investment advisory contract or limited partnership agreement is entered into, extended or renewed. With respect to investment contracts and limited partnership agreements already in existence, such disclosures must be made no later than the July 1, 2012 effective date of the Final Regulations. Many investment advisers to ERISA-covered pension plans and private investment funds will have already received requests from their ERISA investors to provide this disclosure…” Read on>>

Federal Reserve Moves To Implement More Rigorous Capital Regulation (Ballard Spahr)

“The Fed’s approach has largely been to adhere to the Basel III minimum capital ratio requirements except where a more rigorous approach is required by the Dodd-Frank legislation or is otherwise deemed appropriate by the Fed. These Fed issuances are intended to become joint rulemakings with the Office of the Comptroller of the Currency and the FDIC and will be published in the Federal Register after they receive approvals from the latter two agencies. Those approvals are expected during the next several weeks…” Read on>>

Agencies Seek Comment on Regulatory Capital Rules and Finalize Market Risk Rule (Katten)

“The Office of the Comptroller of the Currency (OCC), Board of Governors of the Federal Reserve System (Board), and the Federal Deposit Insurance Corporation (FDIC) (collectively, the agencies) are seeking comment on three notices of proposed rulemaking (NPRs) that would revise and replace the agencies’ current capital rules. The agencies also announced the finalization of the market risk capital rule that was proposed in 2011. The Board took its action late last week, while the FDIC and OCC took action this week…” Read on>>

The FHFA’s New Buy-Back Statement (Bilzin Sumberg)

“The Federal Housing Finance Agency, the regulator of Fannie Mae and Freddie Mac, released a statement yesterday saying it was working with those two entities, which are the nation’s major government-backed mortgage securities investors, to ‘provide lenders a higher degree of certainty and clarity around repurchase exposure and liability as well as consistency around repurchase timelines, incentives and remedies’…” Read on>>

Spotlight on Anti-Money Laundering (Part 1): New Regulatory Path Ahead for Non-Bank Residential Mortgage Lenders and Originators (BuckleySandler)

“Ongoing concern among regulators, law enforcement, and Congress over abusive and fraudulent sales and financing practices in both the primary and secondary residential mortgage markets prompted the Financial Crimes Enforcement Network (FinCEN) to finalize a rulemaking process concerning regulation of non-bank residential mortgage lenders and originators (RMLOs) that started in 2003…” Read on>>

Proposed Legislation for Business Development Companies H.R. 5929: A Capital Increase for Business Development Companies (Dechert)

“Business Development Companies (BDCs) are an increasingly important source of funding for small and mid-sized U.S. companies with limited access to traditional capital markets. On June 8, 2012, Representative Michael M. Grimm (R-N.Y.) joined Representative Nydia Velazquez (D-NY) in introducing the Next Steps for Credit Availability Act (H.R. 5929). The bipartisan bill aims to increase the availability of funding to small to mid-level companies and startups by increasing the capital available to BDCs and reducing certain regulatory burdens on BDCs…” Read on>>

Proposed FATCA Regulations Feature InterGovernmental Approach (White & Case)

“Sections 1471 through 1474, commonly referred to as the Foreign Account Tax Compliance Act (FATCA) were originally enacted as a part of the Hiring Incentives to Restore Employment Act on 3/18/10. FATCA requires foreign financial institutions to enter into reporting agreements with the US with respect to their US account holders or be subject to a new 30% withholding tax imposed on certain US source payments. This new withholding tax generally applies to US source payments of interest, dividends, and other fixed income, as well as gross proceeds from the sale or other disposition of property of a type that can produce interest or dividends from US sources…” Read on>>

 

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