Insight Robin Powers · June 21, 2011
Testimony by Mary Schapiro on Financial Regulatory Reform: The International Context
In testimony before the House Financial Services Committee, SEC Chair Mary Schapiro noted that the US regulators have consulted, and will continue to consult with, international securities regulators that are considering OTC derivatives market reforms. Schapiro explained that because the OTC derivative marketplace already exists as a functioning global market with limited oversight or regulation, international coordination is needed to limit opportunities for cross-border regulatory arbitrage and competitive disadvantages, and to address unnecessarily duplicative and conflicting regulations. The overall goal is to reduce systemic risks, increase transparency, and improve the integrity of the OTC derivatives marketplace, while mindful of the potential effects on efficiency and liquidity.
Insight June 20, 2011
As discussed in my December 13, 2010 post, the National Advertising Division (NAD) of the Council of Better Business Bureaus (BBBs) offers a streamlined, self-regulatory mechanism for remedying false advertising claims made in nationally distributed advertisements. While NAD has a 95% success rate, those advertisers who fail to follow NAD’s recommendations may find themselves before the FTC upon NAD’s recommendation.
On February 16, 2011, I reported on NAD’s recommendation that Nano-Tex cease making several (green and other) advertising claims in connection with three of its fabric coating products. On January 24, 2011, I discussed NAD’s recommendation that Sherwin-Williams modify its no-VOC claims for its HARMONY brand paints.
Insight Robin Powers · June 20, 2011
Investment Advisor Registration Deadline Causing Confusion
In the Private Fund Investment Advisers Registration Act of 2010, Congress adopted changes to the Investment Advisers Act of 1940 to require many more managers of hedge funds or private equity funds to register as investment advisers. Registered advisers are expected to update their books and records practices in order to comply with the new requirements, and may also need to alter their asset valuation and asset custody practices. Some advisers will likely hire additional compliance staff in order to meet the Dodd-Frank requirements.
Insight Robin Powers · June 19, 2011
SEC to provide guidance on Dodd-Frank requirements and extend temporary rules under the Exchange Act.
As previously noted, the Securities Exchange Commission granted itself an extension to finalize the rules mandated by Dodd-Frank. The Commission announced that it will shortly clarify which provisions of Title VII will automatically go into effect on July 16, alter some of the requirements for those automatic provisions and provide temporary relief from other provisions, if necessary. The Commission also plans to extend temporary rules under the Securities Act, the Exchange Act, and the Trust Indenture Act. The SEC stated its hope that these actions will support the flow of credit default swaps into the clearing houses during the extension period.
Insight Robin Powers · June 18, 2011
FIA and ISDA Publishes Documentation for Cleared Swaps in an effort to add structure to OTC market pending full implementation of Dodd-Frank Act and similar regulation in foreign jurisdictions.
In anticipation of the clearing requirements in Dodd-Frank, each of the major clearing houses published proprietary agreements with the intent to best fit OTC swaps clearing into its portfolio of offerings. However, with multiple clearing houses each with its own required documentation, OTC market participants were undoubtedly spending considerable time and money understanding and negotiating on many fronts.
Insight Robin Powers · June 17, 2011
Concerns Facing the OTC Derivatives Market in the Absence of a Workable Regulatory Structure
The delay of Title VII rulemaking in the Dodd-Frank Act, arguably one of the largest pieces of financial legislation to come out of Congress since the Great Depression, is concerning to those involved in all aspects of the OTC market. On July 16, specific provisions of Title VII including Sections 721 (definitions), 723 (clearing requirements), 731 (registration/requirements for swap dealers), 763 (Amendments to Securities and Exchange Act of 1934), and 764 (registration/regulation requirements for security-based swap dealers) will automatically come into effect.
Insight Robin Powers · June 16, 2011
A Dodd-Frank Overview
According to the U.S. Securities and Exchange Commission (SEC), “Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) addresses the gap in U.S. financial regulation of OTC swaps by providing a comprehensive framework for the regulation of the OTC swaps markets.” Dodd-Frank goes into effect July 16, 2011 (360 days after it was passed), with the SEC and the Commodity Futures Trading Commission (CFTC) promulgating and implementing the supporting rules and regulations.
Insight Michael Moradzadeh · June 13, 2011
The evolution of alternative fee arrangements and value billing.
Insight June 10, 2011
The inclination when looking for a lawyer is always to start with big firms. They are well-established in most cities, and connote a certain amount of prestige. There is also still some truth in that big firms recruit the best and brightest from law schools, and thus produce better work product for you.
There are however, many alternatives to a big firm when retaining legal representation, each with their own strengths and weaknesses: boutique firms, solo practitioners, and hiring a general counsel.
Insight June 10, 2011
The Patient Protection and Affordable Care of Act of 2010 created a new form of organization called Accountable Care Organizations (“ACOs”). In late March, 2011 CMS issued a Proposed Rule addressing a variety of issues relating to the formation and operation of these ACOs. This white paper addresses some of the more important legal ramifications surrounding ACOs and their participants.