All - Center for the Study of Financial Market Evolution (CSFME)

Basel Tightens the Reins on Internal Risk Modeling by Banks

by David Schwartz J.D. CPA | Sunday, April 19, 2015 | All, Change Overview and Rationale, Formal Regulatory Remedies

In a November 2, 2015 speech in Madrid, Stefan Ingves, Chairman of the Basel Committee and Governor of Sveriges Riksbank, announced that the Basel Committee on Banking Supervision will revisit internal risk modeling by banks. According to Mr. Ingves, “ample evidence has accumulated to suggest that the current role of internal models in the regulatory framework does not strike the right balance between simplicity, comparability and risk sensitivity.” While “the use of internally modelled approaches was a defining feature of Basel II,” the Basel Committee expects to revisit this reliance on internal modeling and, perhaps, broadly eliminate it for some risk categories.

A Revised Fiduciary Standard Proposal from the DOL

by David Schwartz J.D. CPA | Monday, April 13, 2015 | All, Change Overview and Rationale, Formal Regulatory Remedies

The Department of Labor has issued its long awaited reproposal of fiduciary standards for advisors of ERISA retirement plans. These new rules propose to expand the scope of the the definition of fiduciary under ERISA in order to capture more of the current services of 401(k) and IRA providers.

Congressional Republicans Want Answers on DOL and SEC Fiduciary Standards

by David Schwartz J.D. CPA | Tuesday, March 24, 2015 | All, Formal Regulatory Remedies

In a March 4, 2015 letter, two House Republicans requested answers from Department of Labor (DOL) Secretary Thomas E. Perez about the process for devising new fiduciary rules for investment professionals providing services to retirement plans. Representative John Kline (R-MN), Chairman of the House Committee on Education and the Workforce, and Rep. Phil Roe (R-TN), Chairman of the Subcommittee on Health, Employment, Labor and Pensions, want to know if and how the DOL and the Securities and Exchange Commission (SEC) are working together to minimize potential conflicts, higher costs, and detrimental effects on information available to those saving for retirement.

2015 ROSE Students File Comment Letters with the FSB

by David Schwartz J.D. CPA | Thursday, March 19, 2015 | All, ROSE

The focus of the Winter 2015 ROSE Program was global securities financing data collection and aggregation. This year, Five teams of Fordham University graduate and undergraduate students researched and drafted comment responses to the Financial Stability Board’s (“FSB”) November 2014 consultative document, Standards and Processes for Global Securities Financing Data Collection and Aggregation. The judges reviewed each excellent submission and selected one letter to be published on Fordham letterhead and submitted to the FSB. (Each of the teams submitted their comment letter to the FSB; however, only one received Fordham Unversity’s imprimatur.

Revised Fiduciary Standards Slowed but Not Stopped

by David Schwartz J.D. CPA | Thursday, March 19, 2015 | All, Change Overview and Rationale, Formal Regulatory Remedies

Pursuant to a mandate in the Dodd-Frank act, both the Department of Labor and the Securities and Exchange Commission have been working to develop uniform fiduciary standards for investment advisers and broker-dealers. The efforts of the DOL and SEC have unfolded over the past five years with both floating proposals that have been met with stiff opposition from industry and in Congress. Each effort has hit its own respective roadblocks over the past year. However, despite eleventh-hour efforts by members of the investment industry and some on Capitol Hill, both the DOL and SEC appear to be moving ahead with their respective uniform fiduciary standards.

A Call for Academics to Join Policy Debates Over Securities Regulations

by David Schwartz J.D. CPA | Monday, March 16, 2015 | All, Formal Regulatory Remedies, Procedural Changes

In a recent address before the Center for the Study of Financial Regulation at the University of Notre Dame’s Mendoza College of Business, SEC Commissioner Michael S. Piwowar urged academics to engage more actively in policy debates over securities regulation. Commissioner Piwowar is particularly interested in “data-driven” input from academics in connection with potential reforms to the structure of the U.S. securities markets. The Commission recently finalized the composition of a Market Structure Advisory Committee that will focus on the structure and operations of the U.S. equities markets and will function as a forum and resource for reviewing specific, clearly articulated initiatives or rule proposals. Piwowar sees the Committee’s work as a prime opportunity for academics studying the securities markets to provide real input and make their voices heard.

Basel Banking Supervision Committee Priorities for 2015-2016

by David Schwartz J.D. CPA | Tuesday, February 24, 2015 | All, Change Overview and Rationale, Formal Regulatory Remedies

The Basel Committee on Banking Supervision has announced its planned areas of focus for 2015 and 2016 as it continues to propose and finalize the remaining elements of its Basel III regulatory reform agenda. The Committee will continue to pursue its post-crisis reform agenda, but will now look toward restoring confidence in capital ratios, ensuring consistency across the regulatory framework, monitoring and assessing the implementation of the framework, and improving the overall effectiveness of supervision.

A Hard Push Against the FSOC’s Non-Bank SIFI Designation

by David Schwartz J.D. CPA | Thursday, February 19, 2015 | All, Change Overview and Rationale, Formal Regulatory Remedies

Over the objections many, including asset managers, insurance companies, and even legislators and other regulators, the Financial Stability Oversight Council (FSOC) has pushed ahead with its mandate to identify risks to financial stability that could arise from the material financial distress or failure, or ongoing activities, of nonbank financial companies (Non-bank SIFIs).

SEC Announces February 19 Proxy Roundtable

by David Schwartz J.D. CPA | Monday, January 26, 2015 | All, Change Overview and Rationale, Formal Regulatory Remedies

Today, the Securities and Exchange Commission announced that it will hold a February 19 public roundtable discussion on improving the proxy voting process. The roundtable, which will be held at the SEC’s Washington, DC headquarters, will focus on universal proxy ballots and retail participation in the proxy process.

SEC Adopts New Rules Governing Security-Based Swaps Transactions

by David Schwartz J.D. CPA | Tuesday, January 20, 2015 | All, Disclosure Regimes, Formal Regulatory Remedies

The SEC has issued final rules governing security-based swap data repositories (SDRs) prescribing reporting to regulators and setting public disclosure requirements for security-based swap transaction data. These new rules implement mandates under Title VII of the Dodd-Frank Act requiring the SEC and CFTC to regulate swaps markets. The final rules approved by the Commission on January 14, 2015 “provide a powerful framework for trade reporting and the public dissemination of information that addresses blind spots exposed by the financial crisis.”

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