Understanding the Volcker Rule: Covered Funds and Proprietary Trading Prohibitions. Chadbourne & Parke LLP

Save this PDF as:
 WORD  PNG  TXT  JPG

Size: px
Start display at page:

Download "Understanding the Volcker Rule: Covered Funds and Proprietary Trading Prohibitions. Chadbourne & Parke LLP agale@chadbourne.com"

Transcription

1 Understanding the Volcker Rule: Covered Funds and Proprietary Trading Prohibitions Adam Gale Chadbourne & Parke LLP (212)

2 Presenter Adam Gale Adam Gale, Counsel lin the New York office of Chadbourne & Parke LLP, specializes in regulatory and compliance issues for banks, broker dealers, hedge funds, private equity funds, commodity tradersandregisteredinvestment and registered investment companies. He is a frequent writer and speaker on regulatory issues, including issues relating to the Dodd Frank Act and the Volcker Rule. Adam is the head of Chadbourne's hedge fund practice and represents both established hedge fund and private equity fund managers and start up entities in fund structure and formation, as well as a number of major investors into funds. Prior to joining Chadbourne, Adam was Senior Counsel at The Bank of New York (now BNY Mellon). He was recently called on to advise the Office of the Comptroller of the Currency on issues relating to the Volcker Rule. Adam has represented both large and small U.S. and foreign banking institutions on U.S. bank regulatory issues. 2

3 Chadbourne & Parke LLP Chadbourne & Parke LLP is an international ti law firm with 12 offices around the world. Since its founding in 1902, Chadbourne has been dedicated to providing practical business solutions to a diverse range of clients in virtually all areas of law, emphasizing private equity and hedge fund formation, investment management regulatory and compliance, bank regulation, M&A, corporate/corporate finance,u.s. and international tax, bankruptcy and financial restructuring, energy/renewable energy, project finance, insurance/reinsurance, intellectual property, commercial and product liability litigation, securities litigation and regulatory enforcement, antitrust, real estate and communications. In addition to the U.S. and North America, major geographical areas of concentration include Latin America, Western Europe, Central and Eastern Europe, Russia and the Middle East. 3

4 Structure of Volcker Rule Consists of two general prohibitions: 1. Covered Funds Prohibition Banking entities may not sponsor or acquire an interest in covered funds 2. Proprietary Trading Prohibition Banking entities may not engage in proprietary trading 4

5 Agenda I. Current Status and Who is Covered II. Covered Funds Prohibition III. Issues for Non U.S. Banks Under the Covered Funds Prohibition i IV. Proprietary Trading Prohibition V. Compliance Programs 5

6 I. Current Status and Who is Covered 6

7 Proposed Rules Volcker Rule was enacted as 619 of the Dodd Frank Act in July The specific provisions, however, must be set forth in Rules to be promulgated by various regulators, most notably the Board of Governors of the Federal Reserve. The Fed issued Proposed Rules in October Thousands of comment letters were submitted. Awaiting the Final Rules, which hwere due on July 21, Final Rules are likely to be issued within the next few months. This presentation analyzes the Proposed Rules. 7

8 Effective Date and Conformance Periods Under the Dodd Frank Act, the Volcker Rule s prohibitions were supposed to become effective on July 21, 2012, even if the Rules were not yet finalized by that date. Compliance with the Volcker Rule, however, is not required as of the effective date. Instead, the Volcker Rule provides for a two year transition period ( conformance period) from the effective date, during which banking entities must bring all of their activities in compliance with all of the Volcker Rule prohibitions. Fed has made clear that the conformance period ends on July 21, It was initially unclear whether banking entities, during the two year conformance o ce period, could initiate new activities t that would dbe prohibited under the Volcker Rule. In April 2012, the Fed issued guidance that banking entities may continue to engage gg in prohibited activities, including initiating new activities that would be prohibited, until July 21, Banking entities need to be careful, however, that any new activities can in fact be wound up prior to July 21,

9 Who is Covered: Definition of Banking Entity Any insured depository institution (as defined in 3 of the Federal Deposit Insurance Act); any company that controls an insured depository institution; any company that is treated as a bank holding company for purposes of 8 of the International Banking Act of 1978; any affiliate of the above and any subsidiary of the above. Includes any non-u.s. bank with a U.S. branch or agency office, or that operates a New York Article XII investment company subsidiary, and any affiliate. Definition of "banking entity" excludes an institution that functions solely in a trust or fiduciary capacity and meets a number of other requirements, including that all or substantially all of the deposits of the institution are in trust funds and received in a bona fide fiduciary capacity. 9

10 Definition of Banking Entity Bank Holding Company Act control principles apply in determining whether an affiliate is a banking entity. - Accordingly, an affiliate includes anyone that owns 25% or more of the voting securities of another entity. The affiliate definition therefore picks up more entities than one might normally think of as affiliates. Affiliates or subsidiaries of banks that are asset managers or other investment advisers are included in the definition of banking entity - But a banking entity is allowed to solely act as an investment adviser to a fund. Under the Proposed Rules, a banking entity does not include a private equity fund or hedge fund that qualifies for the so-called asset management permitted activity. - Thus, a hedge fund sponsored by a banking entity can engage in proprietary trading. 10

11 II. Covered Funds Prohibition 11

12 Summary of Covered Funds Prohibition Banking entities are prohibited from: sponsoring, or investing in (acquiring or retaining an ownership interest in) a hedge fund, private equity fund, and numerous other types of privately offered funds and pooled investment vehicles (referred to as covered funds in the Proposed Rules), except for funds that are organized and offered by the banking entity, subject to: o (a) the banking entity owning no more than 3% of the covered fund; o (b) an overall limit of 3% of the banking entity's tier 1 capital invested in covered funds; and o (c) numerous other limitations, such as to the name of the fund. In addition, the banking entity may make seed investments in a fund, including owning 100% of a fund, for up to one year. 12

13 Summary of Covered Funds Prohibition Restrictions on Transactions With Affiliated Covered Funds (Super 23A Provision): - Any banking entity that sponsors a covered fund, - an investment t adviser to a covered fund (even if it does not otherwise sponsor the fund), and - any affiliate: may not enter into a transaction with the fund that would be a "covered transaction" as defined under Federal Reserve Act Section 23A, and must also comply with Federal Reserve Act Section 23B, except that t the Federal Reserve may allow prime brokerage transactions if certain requirements are met. 13

14 Definition: Covered Fund The Act prohibits investments in a hedge fund or a private equity fund. Proposed Rules prohibit investments in a covered fund, but the definitions in both the Act and the Proposed Rule are almost identical: An issuer that would be an investment company as defined in the Investment Company Act of 1940 (the '' '40 Act"), but for section 3(c)(1) or 3(c)(7) of the 40 Act. Proposed Rules add two other categories to the definition of covered fund : o A commodity pool, as defined in section 1a(10) of the Commodity Exchange Act; and o An issuer organized outside the U.S. that would be a covered fund if organized in the U.S. or offered to U.S. residents. Regulators also have the ability to later add to the definition of covered fund any other entity that is a similar fund. 14

15 Covered Fund Definition: Effect on Other Types of Transactions Almost all hedge funds and traditional private equity funds rely on the '40 Act exemptions from registration under sections 3(c)(1) (100-investor limit) or 3(c)(7) (all investors must be "qualified purchasers"). Beyond hedge funds and private equity funds, many other types of privately offered funds and entities also rely on these exemptions, including the following: o most venture capital funds (there is no exemption in the Volcker Rule for VC funds); o many real estate funds (there is no exemption in the Volcker Rule for RE funds); o some types of special purpose vehicles used in project finance transactions; and o some structured finance vehicles (such as CLOs and CDOs). Effect of the definition of covered funds is that in any transaction in which a banking entity is involved and that t is using a privately offered entity that t is relying on the 40 Act exemptions, the banking entity will need to determine if the Volcker Rule prohibits the banking entity s involvement. For example, a banking entity could not invest in a real estate fund that is relying on the 3(c)(1) or 3(c)(7) exemption, without meeting the other requirements of the covered funds regulations. 15

16 Covered Fund Definition: Effect on Tax Equity Transactions Another example of the Volcker Rule s unexpected reach is that some bank investments, as tax equity participants, in renewable energy projects could run afoul of the Volcker Rule, depending on how the transactions are structured. If a banking entity invested directly into an entity that developed energy projects (or invested into a holding company that owns project companies), there would be no problem because the bank would be investing into an operating company, which would not be relying on a 40 Act exemption. If, however, a banking entity formed an intermediate t entity, and that t intermediate entity then invests into a project company, the intermediate entity might be a covered fund, depending on the structure, because it is likely that the intermediate entity would be relying on the 3(c)(1) or 3(c)(7) exemption under the 40 Act. This type of structure is often used when the banking entity is acting as a syndicator of tax equity investments, t and has one or more unaffiliated investors in the intermediate entity. 16

17 Definition: "Sponsoring" a Fund "Sponsoring" a fund is defined as: serving as a general partner, managing member, or trustee of a covered fund; (Proposed Rules add serving as a commodity pool operator) in any manner selecting or controlling (or having employees, officers, directors or agents who constitute) a majority of the directors, trustees or management of a fund; or sharing with a fund, for corporate, marketing, promotional, or other purposes, the same name or a variant of the same name. Note that solely acting as an investment adviser to a fund, but not otherwise investing in the fund or acting in any other capacity (such as acting as a GP), is allowed (and the adviser may receive carried interest ), as long as the adviser does not share with the fund the same name or a variant of the same name. Merely advising a fund, however, subjects the adviser (if it is a "banking entity") and its affiliates to the Federal Reserve Act Section 23A and 23B restrictions on transactions with the fund (discussed below). Proposed Rules clarify that trustee does not include a trustee that has no investment discretion with respect to a covered fund. 17

18 Definition: Ownership Interest Act did not define ownership interest but the Proposed Rules define it as: any equity, partnership or other similar interest (including a GP interest, warrant, and option) in a covered fund, whether voting or nonvoting, or any derivative of such interest. Note that t the addition of a derivative of such interest t in the Proposed Rule means that banks need to be careful about acquiring swaps or other types of derivatives that would give the bank an economic interest in a covered fund. Proposed Rules specifically exclude carried interest - an interest in the share of the performance allocation - if the banking entity (including its affiliates and employees) meet a number of requirements: o serving as the investment manager/adviser or commodity trading adviser; o sole purpose of the interest is to share in the profits for performance compensation for services provided (but a clawback obligation (i.e., obligation to return profits) is allowed); o the profits are distributed promptly, or if not so distributed, the bank s reinvested ested profit does not share in the profits and losses of the covered ed fund; o the banking entity does not pay for its interest; and o the interest is not transferable, except to affiliates. 18

19 3% Limitations Subject to a long list of further limitations (listed below), a banking entity may acquire an ownership interest in a fund, if: it organizes and offers the fund (so it cannot simply be a passive investor); its investment is not more than 3% of the total ownership interests t in any single covered fund (subject to an exception for the first year only); and the aggregate value of all of its ownership interests in all covered funds does not exceed 3% of the banking entity's tier 1 capital (i.e., its regulatory capital). 19

20 3% Limitations Proposed Rules add further requirements as to which investments must be included in calculating the 3% limitation in any single fund and must include: interests in the fund held by an entity that is controlled, directly or indirectly, by the banking entity; its pro rata share of interests held by a covered fund that is not controlled by the banking entity, but in which the banking entity owns or controls more than 5% of the voting shares; and co-investments with a covered fund organized by the banking entity. In addition, under the Proposed Rules, in calculating 3% limitation in any single fund, the banking entity must use either the percentage of (A) capital contributions; or (B) ownership interests, whichever is greater. Note this could cause an issue for a PE fund if an investor is excused from certain investments, causing the bank s contributions to exceed 3%, even if its commitment equals 3%. 20

21 Seed Investments Permitted for One Year Subject to the further limitations set forth below, a banking entity may provide a fund with 100% of its initial equity "to permit the fund to attract unaffiliated investors," provided that: within one year of the fund's establishment, the banking entity must reduce its ownership to no more than 3% of the total ownership interests in the fund, through redemption, sale or dilution (or other methods); and the one-year limit may be extended for up to two additional years, upon a banking entity's application and approval by the Federal Reserve if it finds that an extension would be consistent with safety and soundness and in the public interest. 21

22 Seed Investments Permitted for One Year Proposed Rules provide further guidance on extension applications: Must be submitted 90 days prior to the end of the one-year period; Explain the plan for reducing the investment in the covered fund; Fed will consider a number of factors in reaching its decision, including: o whether the investment would result in a material exposure by the banking entity to high-risk assets or trading strategies; o whether the investment would involve material conflicts of interest between the banking entity and its clients, customers and counterparties; and o the banking entity s prior efforts to reduce its interests in the fund. 22

23 Other Requirements In order to be able to use the 3% limit and the seed investment exceptions, the banking entity must comply with all of the following requirements: provide bona fide trust, fiduciary, or investment /commodity trading advisory services; organize and offer the fund only in connection with the provision of such services, and only to persons who are customers of such services of the banking entity; o Note: Fed has clarified that customers includes prospective investors, even if they have no current relationship with the banking entity. with its affiliates, comply pywith the Federal Reserve Act Section 23A and 23B restrictions on transactions with such funds (discussed below); not, directly or indirectly, guarantee, assume or otherwise insure the obligations or performance of the fund, or of any fund in which such fund invests; not share with the fund, for corporate, marketing, promotional or other purposes, the same name or a variant of the same name (and the fund cannot use bank in its name); not allow any director or employee of the banking entity to take or retain any ownership interest in the fund, except for any director or employee who is directly engaged in providing investment advisory or other services to the fund; and disclose to prospective and actual investors in the fund, in writing, that any losses in such fund are borne solely l by investors in the fund and not by the banking entity, along with other required disclosures. 23

24 Further Limitations on Permitted Activities In order to engage in any "permitted activity" under the covered funds rules, no transaction, class of transactions or activity may: o involve or result in a material conflict of interest between the banking entity and its clients, customers, or counterparties; o result, directly or indirectly, in a material exposure to high risk assets or high risk trading strategies (defined in the Proposed Rules as significantly increasing the likelihood that the bank would incur a substantial financial loss or would fail); or o pose a threat to the safety and soundness of such banking entity or to the financial stability of the U.S. Proposed Rules provide that a material conflict exists if the banking interests are materially adverse to the client, customer or counterparty with respect to the transaction, unless either: o the banking entity timely discloses the conflict in advance, in a manner allowing the other party to negate or mitigate the adverse effect; or o the banking entity has established and maintained information barriers in written policies and procedures designed to prevent the conflict from resulting in a material adverse effect on the other party Note that the bank may not rely on the information barriers if it should reasonably know that the conflict may materially adverse effect the other party. 24

25 Other Permitted Activities In addition to the permitted 3% limitation, the Act includes an exception for investments in certain covered funds organized outside of the U.S. (Non-US exemption is discussed in detail below.) Proposed Rules include a number of new exceptions as other permitted activities : o Investments t in SBICs; o Investments to promote the public welfare under 12 U.S.C. 24; o Qualified rehabilitation expenditures with respect to building rehabs; o Risk-mitigating hedging activities - Acting as intermediary for non-bank customer to facilitate customer s exposure to profits and losses of the covered fund; or - Connected to a compensation arrangement with bank employee who directly provides investment advisory or other services to the fund - A number of other requirements apply, including: establishing compliance controls; mitigating exposure to the covered fund through an offsetting exposure; and documenting at time of the transaction the risk-mitigating purpose. 25

26 Further Permitted Activities Proposed Rules further allow sponsoring, or acquiring an ownership interest in: A covered fund that issues asset-backed securities, so long as fund s assets are solely l comprised of: o Loans; o Contractual rights or assets arising from loans supporting ABSs; or o Interest rate or FX derivatives relating to terms of loans or contractual rights, and used for hedging purposes. A joint venture between the banking entity and any other person, if the JV is an operating company, and does not engage in other prohibited activity. An acquisition vehicle for the purpose of a merger or acquisition. An issuer of ABS, but only as to the portion of the credit risk that is retained by a banking entity that is a securitizer or originator. A wholly-owned owned subsidiary of the banking entity that performs liquidity management activities and carried on the banking entity s balance sheet. Investments in certain bank-owned life insurance separate accounts. Acquiring i an interest t in a covered fund in the ordinary course of collecting a debt (so long as bank subsequently divests its interest within one year). 26

27 Extended Transition Period for "Illiquid Funds" The Federal Reserve may, upon application by any banking entity, extend the transition i period for that particular banking entity: for up to a maximum of 5 years (which h is in addition to the 2-year transition period) - so could extend until July 21, 2019; and to the extent necessary to fulfill a contractual obligation that was in effect on May 1, 2010 to take or retain any ownership interest in, or otherwise provide additional capital to, an "illiquid fund. " 27

28 Extended Transition Period for "Illiquid Funds" An "illiquid fund" is defined as a covered fund that: o as of May 1, 2010, was principally invested in, or was invested and contractually committed to principally invest in, "illiquid assets"; and o makes all investments pursuant to, and consistent with, an investment t strategy t to principally i invest in illiquid id assets. Proposed Rules include a definition of illiquid assets, which includes any asset that is: not cash; not traded on an exchange; and does not have an initial term of one year or less. Most private equity funds (which invest in portfolio companies), as well as real estate funds and venture capital funds, presumably would be able to obtain the extension. Very few hedge funds would fit within the definition of "illiquid fund, " as the investment strategy of most hedge funds is to principally invest in liquid, rather than illiquid, assets. 28

29 Potential Alternative for Bank Investments Although a banking entity cannot invest at all in a covered fund that it does not offer and organize, a banking entity could make a coinvestment, alongside a covered fund, directly into a portfolio company (if that portfolio company is an operating company). The co-investment could not be made pursuant to a co- investment t fund, as that t co-investment t fund would be a "covered fund", which would violate the Volcker Rule. There would be no violation, however, if the banking entity made a direct investment into the operating company, and the banking entity could enter into a separate advisory agreement with a fund manager whereby the banking entity agrees to pay fees to the fund manager for advising the banking entity on the co-investment. 29

30 Restrictions on Transactions with Affiliated Covered Funds Super 23A A banking entity that t advises, di manages, sponsors, organizes or offers covered funds (and all of the banking entity s affiliates) may not enter into a transaction with the covered fund (or with any other covered fund that is controlled by the covered fund) must comply with the restrictions in Section 23A of the Federal Reserve Act ( FRA ) as if the banking entity or affiliate were a member bank and the covered fund were an affiliate of the member bank. Any such transaction must also comply with Section 23B of the FRA, which requires all transactions between a member bank and its affiliates to be on an arm s length basis. 30

31 Section 23A Purpose of Section 23A is to protect tfdic insured dbanks from engaging in risky transactions. As applied to covered funds and affiliated member banks, Section 23A prohibits member banks of the FDIC from: transacting a loan or extending a line of credit to the covered fund; purchasing or investing in securities issued by the covered fund; purchasing assets, including assets subject to an agreement to repurchase, from the covered fund, except such purchase of real and personal property as may be specifically exempted by the Fed by order or regulation; accepting securities issued by the covered fund as collateral security for a loan or extension of credit to any person or company; or issuing a guarantee, acceptance, or letter of credit, including an endorsement or standby letter of credit, on behalf of the covered fund. 31

32 Why Is This Restriction Super 23A? Under usual 23A, a member bank can engage in some transactions with the affiliate, for example transactions that involve less than 10% of the stock and surplus of the bank. o Volcker Rule restrictions relating to Section 23A, however, do not include any de minimis bucket. Usual 23A places applies to Federal Reserve member banks and their subsidiaries only. It does not place prohibitionson on otheraffiliates ofthemember bank. o Volcker Rule 23A provision, however, greatly expands the restrictions on transactions to all affiliates, so it treats all affiliates of a banking entity as if they were the member bank. 32

33 Super 23A: Exception for Prime Brokerage Transactions A banking entity may enter into a prime brokerage transaction with a covered fund in which a hedge fund or private equity fund managed, sponsored or advised by the banking entity invests, if: the covered banking entity is in compliance with the requirements of the Volcker Rule with respect to a covered fund organized and offered by such covered banking entity (or an affiliate or subsidiary thereof); the chief executive officer (or equivalent officer) of the toptier affiliate of the covered banking entity certifies in writing annually (with a duty to updatethe the certification if the information in the certification materially changes) that the covered banking entity does not, directly or indirectly, guarantee, assume, or otherwise insure the obligations or performance of the covered fund or of any covered fund in which such covered fund invests; and the Fed has not determined that such transaction is inconsistent with the safe andsoundoperationandconditionof operation of the covered banking entity. 33

34 Super 23A: Prime Brokerage Transaction Exception Under the Proposed drules, a prime brokerage transaction means one or more products or services provided by a covered banking entity to a covered fund, such as custody, clearance, securities borrowingorlendingservices services, tradeexecution execution, or financing, data, operational, and portfolio management support. Permitted Prime Brokerage Transactions must also comply pywith Section 23B of the FRA as if the counterparty were an affiliate. 34

35 Issues Concerning Prime Brokerage Transaction Exception Dfiii Definition of prime brokerage transaction is still vague. E.g. would FX prime brokerage or futures clearing be deemed prime brokerage transactions? The exception applies only to transactions with funds in which a fund managed by a bank invests. Does not seem to allow for transacting with funds the same in substance but that are organized as managed accounts, or for funds directly managed by a bank affiliate. Compliance conditions to use the exception, as they require a certification of the CEO of the top tier tier affiliate of the covered banking entity. 35

36 III. Covered Funds Prohibition: Issues for Non U.S. US Banks 36

37 Conflicts With Foreign Law In orderto fit within the exceptions to the restrictions on sponsoringa covered fund, the covered fund must not: share the same name or a variation of the same name with thebankingentity entity (orwith an affiliate orsubsidiary thereof); or use the word bank in its name. Many foreign laws (including for example, UCIT regulations), however, require banks that sponsor a fund to use the bank s name in the name of fund. This prohibition on sharing the same name applies to banking entities and their affiliates, which would include the asset management arms of banks. Many foreign banks have asset management arms that do not use the bank s name (e.g., SocGen owns Lyxor). But since the asset management arm is an affiliate, it appears that a fund could not share the same name as the bank or the affiliate (e.g., Lxyor could not use Lyxor in the name of a fund). 37

38 Exception for Activities Solely Outside the United States Act and the Proposed drules allow for the acquisition iti or retention of any ownership interest in, or the sponsorship of, a covered fund by abanking entity if: the banking entity is not directly or indirectly controlled by abanking entity that is organized under the laws of the United States or of one or more States; the activity is conducted pursuant to Section 4(c)(9) or 4(c)(13) of the Bank Holding Company Act; no ownership interest in such covered fund is offered for sale or sold to a resident of the United States; and the activity occurs solely outside of the United States. 38

39 Exception for Activities Solely Outside the United States Proposed drules provide that t a banking entity is presumed to be in compliance with Section 4(c)(9) or 4(c)(13) of the BHC Act if: if it is a qualifying foreign banking organization and in compliance with subpart B of Regulation K of the Federal Reserve Board; or if not a foreign banking organization, the entity meets at least two of the following requirements: total assets of the covered banking entity held outside of the United States exceed total assets of the covered banking entity held in the United States; total revenues derived from the business of the covered banking entity outside of the United States exceed total revenues derived from the business of the covered banking entity in the United States; or total net income derived from the business of the covered banking entity outside of the United States exceeds total net income derived from the business of the covered banking entity in the United States. 39

40 Exception for Activities Solely Outside the United States Proposed drules would dfi define an activity it to have occurred solely outside of the United States only if: the banking entity engaging in the activity is not organized under the laws of the United States or of one or more States; no subsidiary, bidi affiliate, or employee of the covered banking entity that is involved in the offer or sale of an ownership interest in the covered fund is incorporated or physically located din the United dstates t or in one or more States; and no ownership interest in such covered fund is offered for sale or sold to a resident of the United States. 40

41 Issues With Solely Outside the United States Exception Solely l Outside the U.S. US is very narrow From a policy perspective, a non U.S. bank should be able to acquire a passive ownership interest in a non U.S. fund. But the Proposed Rules require that the covered fund not be offered for sale in the U.S. In a passive investment, however, the bank does not control where the fund is offered, so a non U.S. bank could be precluded from making investments unless it controls the fund. Some non U.S. banks may want to U.S. based personnel to sell to non U.S. investors. But U.S. personnel of bank affiliates are not allowed to participate in fund offerings even to non U.S. residents. 41

42 Other Issues for Non U.S. US Banks Definition of covered fund pulls in every investment vehicle even publicly traded and regulated foreign funds. Not clear how to calculate investments in funds for purposes of complying with restrictions limiting to percentage of Tier 1 capital. U.S. US restrictions may impinge on foreign regulation of non U.S. banks. Volcker Rule Super 23A requirements do not have a similar solely outside the U.S. provision exception to its prohibitions. 42

43 IV. Proprietary Trading Prohibition 43

44 Summary of Proprietary Trading Prohibition Bankingentities may not engagein proprietary trading : to engage as a principal in any transaction to purchase or sell, or otherwise acquire or dispose of, any security, derivative, future or option on any such security, derivative i or future principally for the purpose of short term resale, benefitting from shortterm price movements, realizing short term arbitrage profits, or hedging g one of those positions. Agency transactions are outside the scope of the rule. Under the Proposed Rules, there is a rebuttable presumption that any security, derivative or future that is held for 60 days or less involves proprietary trading unless an exemption applies. 44

45 Definition: Proprietary Trading (cont.) Every position taken by a registered broker dealer, municipal securities dealer, government securities dealer, swap dealer or securities based swap dealer, in connection with its dealing activities, is proprietary trading, unless an exemption applies (i.e., presumption is that dealing is proprietary trading). Swaps, security based swaps, FX forwards, FX swaps and commodity forwards are classified as derivatives and thus subject to the prohibition. Even if the following are for the short term, loans, spot commodities and spot FX are not covered financial i positions, ii and are thus excluded dfrom the prohibition. o Note: The Proposed Rules do not include criteria for determining what is a loan, or whether equity like control features in an instrument termed a loan affect the determination. 45

46 Proprietary Trading: Exclusions Repos and Reverse Repos: Accounts used solely ll for positions arising under repos/reverse repos because they are the economic equivalent of a secured loan Securities Lending: Accounts used solely ll for positions held hldunder a securities lending arrangement because such an arrangement operates as a means to facilitate settlement of securities transactions and is not based on expected or anticipated movements in asset prices. Liquidity Management: Accounts used solely for bona fide liquidity management to meet short term term liquidity needs in accordance with a documented liquidity plan meeting certain criteria. o Necessary because banks need to manage their liquidity, but the exclusion is narrow and must be pursuant to a documented plan. 46

47 Market Making Proprietary Trading: Permitted Activities Trading in U.S. Government Obligations Risk Mitigating Hedging Underwriting Trading on Behalf of Customers Trading Solely Outside the U.S. Certain Trading by Insurance Companies 47

48 Permitted Activities (cont.) Additional requirements that apply to permitted activities: Mustbeconductedin accordance with certain requirements that apply to each permitted activity; Banking entity must have implemented the required compliance program (idea bi being that t if no program is in place, banking entity may engage in a prohibited activity in the guise of a permitted activity); For certain exempt trading activities, the trading unit conducting the activity must report quantitative measurements to the U.S. regulators; and The banking entity must ensure that the activity would not: Involve or result in a material conflict of interest between the entity and its clients, customers or counterparties; Result, directly or indirectly, in a material exposure by the banking entity to a high risk asset or high risk trading strategy; or Pose a threat to the safety and soundness of the entity or the financial stability of the United States. 48

49 Permitted Activity: Market Making To qualify lf for the market making k permitted activity, the following requirements must be met: Bona Fide Market Making. The particular unit must hold itself out as willing to buy and sell positions in the particular covered financial position for its own account on a regular or continuous basis. Near Term Demand. Activities must be designed not to exceed reasonably expected near term demands of clients, customers or counterparties. Revenue. The activities of the trading unit must be designed to generate revenues primarily from sources including fees, commissions and bid/ask spreads, or other income not attributable to changes in value, or hedging, of covered financial positions held in the trading account. 49

50 Permitted Activity: Market Making (cont.) Registration. The banking entity must be registered in the U.S., or excluded or exempt from U.S. registration, as a securities dealer, municipal securities dealer, government securities dealer, swap dealer or security based swap dealer, or, if engaged in business as a dealer outside the United States, subject to substantive regulation where its business is located. Internal Compliance. The activity must be conducted pursuant to reasonably designed written policies and procedure and controls andbesubject to independenttesting testing. Compensation. Compensation of persons performing market making activities must be designed not to reward proprietary trading. 50

51 Permitted Activity: Trading in U.S. Government Obligations U.S. government obligations includes US U.S. and municipal ii general, limited and pass through obligations and forward trading. It does not include obligations of foreign governments or multilateral organizations, derivatives on government obligations or obligations guaranteed by a government issuer. Therefore, any trading in those instruments must qualify as market making or another permitted activity to be permissible. Foreign governments have objected that failing to permit trading in foreign government obligations will damage trading. To qualify for the exemption, the following requirements must be met: Compliance and Metrics. Trading units that engage in market making related activities iii or trade in US U.S. government obligations i must meet strict compliance requirements and report a set of metrics to the U.S. regulators. 51

52 Permitted Activity: Risk Mitigating ik ii i Hedging di To qualify for the exemption, the following requirements must be met: Specific Risks. The hedging transaction must be made in connection with existing individual or aggregated positions in other holdings and must be designed to reduce specific risks. Portfolio hedging is contemplated. Anticipatory hedging (i.e., putting a hedge on ahead of taking a position) is permitted if consistent with risk management practices and is taken slightly before the risk materializes. (Not clear what slightly means.) Correlation. Hedges must be reasonably correlated to the risk that the purchase or sale is intended to hedge. No New Significant Exposures. At inception, the hedge must not give rise to new significant unhedged exposures. Continuing Review. Ongoing review, monitoring and management of the hedge consistent withwrittenhedgingwritten hedging policies mustensure a reasonable level of correlation is maintained and that any significant exposure after inception of the hedge is mitigated. (Need to look at the correlation between the risk and the hedge throughout the life of the transaction.) 52

53 Permitted Activity: Risk Mitigating Hedging Disagreement as to whether JP Morgan s London Whale trades would have fit within the hedging exemption had the Volcker Rule been in effect. In particular, disagreement whether: the trades were reasonably correlated to the risk the hedge gave rise to new significant unhedged exposures the trades were designed to reduce specific risks 53

54 Permitted Activity: Risk Mitigating Hedging (cont.) Internal Compliance Program. The compliance regime must include written hedging policies at the trading unit level and articulated mandates for each trader to ensure that the decision of how to put on a hedge is consistent with such policies and mandates. Compensation Incentives. Compensation arrangements must be designednotto not to reward proprietary risk taking. Hedging by Different Entities. If separate legal entities or levels of an organization establish positions and the corresponding hedges, the entity must document the risk mitigating ik ii i purpose of the hd hedge, the risks that the transaction is designed to reduce, and the level of organization establishing the hedge. 54

55 Permitted Activity: Underwriting To qualify for the exemption, the following requirements must be met: Internal Compliance. The banking entity must have the requisite internal compliance program, including written policies and procedures, internal controls and independent testing required to ensure the underwriting criteria are met. Distribution. The transactions must be effected solely in connection with a distribution of securities for which the banking entity is acting as an underwriter. These terms generally track the Reg M definitions of distribution, securities and underwriter, although the definition of underwriter includes a person who has an agreement with ihanother underwriter to engage in a distribution of securities for or on behalf of an issuer or selling security holder. Customer Demand. The underwriting activities of the banking entity must be designed not to exceed the reasonably expected near term demands of clients, customers and counterparties. 55

56 Permitted Activity: Underwriting (cont.) Revenue. As with the market making k permitted activity, the underwriting activities of the entity must be designed to generate revenues primarily from fees, commissions, underwriting spreads or other income, and not from appreciation in the value of covered financial positions it holds related to such activities or the hedging of such covered financial position. Compensation Incentives. Compensation arrangements for underwriting personnel must be designed not to reward proprietary risk taking. 56

57 Permitted Activity: Trading on Behalf of Customers Trading on bhlf behalf of customers is narrowly defined: dfi d Purchase or sale must be conducted by the banking entity acting as investment adviser, commodity trading adviser, trustee or in a similar fiduciary capacity; conducted for the account of the customer; and involve solely financial positions of which the customer is the beneficial owner; or The banking entity is acting as a riskless principal (i.e., the banking entity enters into a purchase or sale of a position for its own account to offset a contemporaneous sale to or a purchase from a customer); or The covered banking entity is an insurance company that purchases or sells a covered financial position for a separate account. 57

58 Permitted Activity: Trading Solely Outside the U.S. To qualify for the exemption, the following requirements must be met: A U.S. banking entity may not, directly or indirectly, be involved in the trading (thus, the exemption is unavailable to U.S. US banking entities even if they are indirectly involved) No party to the trade may be a U.S. resident. The term U.S. resident is unique (and broader than Reg. S definition) it includes natural persons who reside in the U.S., companies organized in the U.S., U.S. branches of foreign entities, non U.S. branches of U.S. banks, and discretionary accounts held for the benefit of non U.S. residents by a U.S. dealer or fiduciary For example, a French banking entity would not be permitted to engage in trading with the London office of a U.S. bank. None of the banking entity s personnel that are directly involved in the trade may be physically located in the U.S. (although personnel performing purely administrative, clerical or ministerial functions may be in the U.S.) Proposed Rules: The trade must be executed wholly outside of the U.S. (risk management and booking outside the U.S. is insufficient) 58

59 Metrics The market making, hedging, underwriting and trading in U.S. government obligations permitted activities require that the banking entity availing itself of the exemption must calculate certain metrics on a daily basis and report them to the U.S. regulators each month, and must also keep records regarding such metrics. The metrics must be reported at the trading desk klevel, l at one level lof the organization up from the trading desk, and across all trading operations. The U.S. regulators will analyze the reported information to monitor bankingentities compliance with the prohibitiononproprietary on proprietary trading. The required metrics fall in to five categories: Risk management measurements (including VaR, SVaR and VaR exceedance) Source of revenue of revenue measurements (including several P&L metrics) Revenue relative to risk measurement (including P&L volatility and related statistical analyses) Customer facing activitymeasurements (including inventory aging and risk turnover, and a ratio of customer to noncustomer trades) Payment of fees, commissions and spreads measurement (spreads/fees earned vs. paid) 59

60 V. Compliance Program Requirements 60

61 Required Compliance Program: Proprietary Trading Banking entities that engage in proprietary trading must implement a comprehensive compliance program. Among other things, it must include: Board of directors and CEO responsibility to review and approve of the program, maintain a culture of compliance and identify responsible business line managers Independent testing of the program s effectiveness A system of internal controls reasonably designed to monitor and identify potential areas of noncompliance and prevent the entity from engaging in prohibited activities Authorized risks, instruments and products: risk limits, including yetto be defined numerical thresholds for each trading unit which will trigger heightened review of quantitative measurements; internal escalation and regulator notification upon a reasonable likelihood of violation; and firm specific metrics (as necessary) 61

62 Required Compliance Program: Proprietary Trading Compliance program requirements (continued): Making and keeping records sufficient to demonstrate compliance with the Proprietary Trading rules Internal policies and procedures that specify how trading accounts are identified and describe each trading unit s objectives and strategies Training i for trading personnel, managers and other appropriate personnel 62

63 Required Compliance Program: Proprietary Trading (Cont.) The compliance rules even apply to banking entities that do not engage in proprietary trading: Must enact compliance policies that include measures designed to prevent the entities from becoming engaged in such activities and that require the entity to develop and provide for the compliance program required by the Volcker Rule prior to engaging in such activities (or, in the case of covered funds activities, making such investments). Proposed Rules state that compliance programs should not follow a generic one size fits all approach, but instead should ldbe carefully tailored to take into account and reflect the unique manner in which the banking entity operates, as well as the particular compliance risks its businesses present. 63

64 Required Compliance Program: Covered Funds Proposed Rules also require that banking entities develop a compliance program reasonably designed to ensure and monitorcompliance with the prohibitions and restrictions on covered fund activities. All of the same requirements as apply to the Proprietary Trading compliance program, except as applicable to trackingthe the covered fund rules and activities. In addition, enhanced reporting and recordkeeping requirements apply if: o the banking entity has, together with affiliates, aggregate investments in covered funds of $1 billion; or o sponsors or advises, together with its affiliates, covered funds which have total assets of $1 billion (in each case as measured over the prior four quarters) Compliance policies and procedures to track the covered funds activities should be somewhat easier to draft and monitor than the proprietary trading activities, but certain monitoring could be difficult (such as tracking whether risk mitigating hedging activities are within the requirements). 64

65 Contact Information Adam D. Gale Chadbourne & Parke LLP 30 Rockefeller Plaza New York, NY (212)

Agencies Adopt Final Rules Implementing The Volcker Rule; Federal Reserve Board Extends Conformance Period

Agencies Adopt Final Rules Implementing The Volcker Rule; Federal Reserve Board Extends Conformance Period CLIENT MEMORANDUM Agencies Adopt Final Rules Implementing The Volcker Rule; Federal Reserve Board Extends December 18, 2013 AUTHORS David S. Katz Jack I. Habert Laura P. Gavenman On December 10, 2013,

More information

Hedge Fund and Private Equity Fund Sponsorship and Investments Under the Proposed Regulations

Hedge Fund and Private Equity Fund Sponsorship and Investments Under the Proposed Regulations The Volcker Rule 1 Hedge Fund and Private Equity Fund Sponsorship and Investments Under the Proposed Regulations The Volcker Rule prohibits a banking entity from sponsoring or investing in a hedge fund

More information

Dodd-Frank Act Changes Affecting Private Fund Managers and Other Investment Advisers By Adam Gale and Garrett Lynam

Dodd-Frank Act Changes Affecting Private Fund Managers and Other Investment Advisers By Adam Gale and Garrett Lynam Dodd-Frank Act Changes Affecting Private Fund Managers and Other Investment Advisers By Adam Gale and Garrett Lynam I. Introduction The Dodd-Frank Wall Street Reform and Consumer Protection Act ( Dodd-Frank

More information

The Volcker Rule. Financial Institutions

The Volcker Rule. Financial Institutions Financial Institutions 1 The Volcker Rule The Volcker Rule 1 prohibits an insured depository institution and its affiliates from: engaging in proprietary trading ; acquiring or retaining any equity, partnership,

More information

Regulatory Practice Letter December 2013 RPL 13-21

Regulatory Practice Letter December 2013 RPL 13-21 Regulatory Practice Letter December 2013 RPL 13-21 Prohibitions and Restrictions on Proprietary Trading and Relationships with Hedge Funds and Private Equity Funds (Volcker Rule) - Final Rule Executive

More information

Volcker Rule Interim Examination Procedures

Volcker Rule Interim Examination Procedures Office of the Comptroller of the Currency June 2014 Contents Volcker Rule Interim Examination Procedures...1 Background... 1 General Procedures... 2 Proprietary Trading... 7 Covered Funds... 14 Conclusions...

More information

A User s Guide to The Volcker Rule February 2014

A User s Guide to The Volcker Rule February 2014 2014 Morrison & Foerster LLP All Rights Reserved mofo.com Last updated Feb. 18, 2014 A User s Guide to The Volcker Rule February 2014 Table of Contents Summary...3 SUBPART B Proprietary Trading...5 SUBPART

More information

PART 75 PROPRIETARY TRADING AND CERTAIN INTERESTS IN AND RELATIONSHIPS WITH COVERED FUNDS.

PART 75 PROPRIETARY TRADING AND CERTAIN INTERESTS IN AND RELATIONSHIPS WITH COVERED FUNDS. PART 75 PROPRIETARY TRADING AND CERTAIN INTERESTS IN AND RELATIONSHIPS WITH COVERED FUNDS. SUBPART A Section 1 Section 2 SUBPART B Section 3 Section 4 Section 5 Section 6 Section 7 Section 8 Section 9

More information

STATEMENT OF MARTIN J. GRUENBERG CHAIRMAN FEDERAL DEPOSIT INSURANCE CORPORATION VOLCKER RULE IMPLEMENTATION. before the

STATEMENT OF MARTIN J. GRUENBERG CHAIRMAN FEDERAL DEPOSIT INSURANCE CORPORATION VOLCKER RULE IMPLEMENTATION. before the STATEMENT OF MARTIN J. GRUENBERG CHAIRMAN FEDERAL DEPOSIT INSURANCE CORPORATION on VOLCKER RULE IMPLEMENTATION before the COMMITTEE ON FINANCIAL SERVICES UNITED STATES HOUSE OF REPRESENTATIVES February

More information

The Volcker Rule: Prohibition on Sponsorship and Investment in Covered Funds

The Volcker Rule: Prohibition on Sponsorship and Investment in Covered Funds 2014 Morrison & Foerster LLP All Rights Reserved mofo.com The Volcker Rule: Prohibition on Sponsorship and Investment in Covered Funds Jay G. Baris JBaris@mofo.com Henry M. Fields HFields@mofo.com February

More information

Supporting Statement for the. (Proprietary Trading and Certain Interests in and Relationships with Covered Funds) (Reg VV; OMB No.

Supporting Statement for the. (Proprietary Trading and Certain Interests in and Relationships with Covered Funds) (Reg VV; OMB No. Supporting Statement for the Reporting, Recordkeeping, and Disclosure Requirements Associated with Regulation VV (Proprietary Trading and Certain Interests in and Relationships with Covered Funds) (Reg

More information

Private Fund Investment Advisers

Private Fund Investment Advisers Financial Institutions 1 Private Fund Investment Advisers Title IV of the Dodd-Frank Act provides for a number of changes to the regulatory regime governing investment advisers and private funds. Among

More information

Client Alert The Volcker Rule Proprietary Trading Prohibition:

Client Alert The Volcker Rule Proprietary Trading Prohibition: North America Banking & Finance Client Alert The Volcker Rule Proprietary Trading Prohibition: January 2014 A Primer for Nonfinancial Company CFOs and Treasurers Prepared by: Daniel L. Goelzer + 1 202

More information

The Dodd-Frank Wall Street Reform and Consumer Protection Act: Impact, Issues and Concerns in Implementing the Volcker Rule

The Dodd-Frank Wall Street Reform and Consumer Protection Act: Impact, Issues and Concerns in Implementing the Volcker Rule July 2010 The Dodd-Frank Wall Street Reform and Consumer Protection Act: Impact, Issues and Concerns in Implementing the Volcker Rule BY KEVIN L. PETRASIC Introduction The Dodd-Frank Wall Street Reform

More information

The Volcker Rule and Private Funds: Final Regulations Are Out

The Volcker Rule and Private Funds: Final Regulations Are Out The Volcker Rule and Private Funds: Final Regulations Are Out December 16, 2013 On December 10, the five federal agencies responsible for writing regulations implementing the Volcker Rule (the Agencies

More information

Final Regulation Implementing the Volcker Rule

Final Regulation Implementing the Volcker Rule Legal Report Final Regulation Implementing the Volcker Rule The US federal financial regulators recently approved the much-anticipated joint final regulation implementing the Volcker Rule, a key element

More information

The Volcker Rule Prohibition on Proprietary Trading: Considerations for Broker-Dealer Affiliates of Foreign Banking Organizations

The Volcker Rule Prohibition on Proprietary Trading: Considerations for Broker-Dealer Affiliates of Foreign Banking Organizations Client Alert January 9, 2014 The Volcker Rule Prohibition on Proprietary Trading: Considerations for Broker-Dealer Affiliates of Foreign Banking Organizations The Volcker Rule imposes significant restrictions

More information

The Federal Reserve s Final Rule on Merchant Banking and Revised Capital Proposal for Investment Activities

The Federal Reserve s Final Rule on Merchant Banking and Revised Capital Proposal for Investment Activities MEMORANDUM May 4, 2001 RE: The Federal Reserve s Final Rule on Merchant Banking and Revised Capital Proposal for Investment Activities The Federal Reserve Board (the FRB ) has taken two important steps

More information

STROOCK SPECIAL BULLETIN

STROOCK SPECIAL BULLETIN STROOCK & STROOCK & LAVAN LLP STROOCK SPECIAL BULLETIN Final Regulations Implementing the Volcker Rule: Proprietary Trading March 21, 2014 I. Introduction On December 10, 2013, in connection with Title

More information

T he restrictions of Sections 23A and Regulation W

T he restrictions of Sections 23A and Regulation W BNA s Banking Report Reproduced with permission from BNA s Banking Report, 100 BBR 109, 1/15/13, 01/15/2013. Copyright 2013 by The Bureau of National Affairs, Inc. (800-372-1033) http://www.bna.com REGULATION

More information

Affiliate Transaction Restrictions for Banks: Your Guide to the Requirements

Affiliate Transaction Restrictions for Banks: Your Guide to the Requirements Affiliate Transaction Restrictions for Banks: Your Guide to the Requirements Presented by Practical Law Company Speakers: November 10, 2011 William E. Stern, Esq. Partner Goodwin Procter LLP Jeremy Estabrooks,

More information

FINANCIAL SERVICES FLASH REPORT

FINANCIAL SERVICES FLASH REPORT FINANCIAL SERVICES FLASH REPORT The Volcker Rule: The End of Proprietary Trading? October 13, 2011 This week in the United States, the Federal Reserve Board, the Office of the Comptroller of the Currency,

More information

ADVISORY Dodd-Frank Act

ADVISORY Dodd-Frank Act ADVISORY Dodd-Frank Act July 21, 2010 ADVISERS TO PRIVATE INVESTMENT FUNDS On July 21, 2010, President Obama signed into law the Dodd-Frank Wall Street Reform and Consumer Protection Act (the Act). The

More information

A Closer Look The Dodd-Frank Wall Street Reform and Consumer Protection Act

A Closer Look The Dodd-Frank Wall Street Reform and Consumer Protection Act A Closer Look The Dodd-Frank Wall Street Reform and Consumer Protection Act To view our other A Closer Look pieces on Dodd-Frank, please visit www.pwcregulatory.com Part of an ongoing series The Volcker

More information

Code of Ethics Effective June 1, 2015

Code of Ethics Effective June 1, 2015 Code of Ethics Effective June 1, 2015 APPLICABLE RULES AND REGULATIONS Rule 17j-1 of the Investment Company Act of 1940, as amended Rule 204A-1 of the Investment Advisers Act of 1940, as amended I. POLICY

More information

Insights Skadden, Arps, Slate, Meagher & Flom LLP & Affiliates

Insights Skadden, Arps, Slate, Meagher & Flom LLP & Affiliates Insights Skadden, Arps, Slate, Meagher & Flom LLP & Affiliates 1.16.14 If you have any questions regarding the matters discussed in this memorandum, please contact one of the attorneys listed on Page 24

More information

OLCKER ULE EDGE UNDS RIVATE QUITY UNDS January 6, 2014 www.volckerrule.com

OLCKER ULE EDGE UNDS RIVATE QUITY UNDS January 6, 2014 www.volckerrule.com January 6, 2014 OLCKER ULE EDGE UNDS RIVATE QUITY UNDS January 6, 2014 www.volckerrule.com These Davis Polk flowcharts are designed to assist banking entities in identifying permissible and impermissible

More information

Title VII: Derivatives (Wall Street Transparency and Accountability Act of 2010)

Title VII: Derivatives (Wall Street Transparency and Accountability Act of 2010) Title VII: Derivatives (Wall Street Transparency and Accountability Act of 2010) Summary: Regulates the previously unregulated, over-the-counter (OTC) derivatives market Requires registration of swap dealers,

More information

The Bank Holding Company Act is amended by adding the following new sections:

The Bank Holding Company Act is amended by adding the following new sections: 1 1 1 1 1 1 1 1 0 1 0 1 0 The Bank Holding Company Act is amended by adding the following new sections: SEC. 1. PROHIBITIONS ON PROPRIETARY TRADING AND CERTAIN RELATIONSHIPS WITH HEDGE FUNDS AND PRIVATE

More information

The Volcker Rule: Impact of the Final Rule on Securitization Investors and Sponsors

The Volcker Rule: Impact of the Final Rule on Securitization Investors and Sponsors Client Alert December 26, 2013 The Volcker Rule: Impact of the Final Rule on Securitization Investors and Sponsors On December 10, 2013, the Federal Reserve, FDIC, OCC, SEC and CFTC (the Agencies ) issued

More information

SEC ADOPTS FINAL RULES TO THE INVESTMENT ADVISERS ACT OF 1940 IMPLEMENTING PROVISIONS OF THE DODD FRANK ACT

SEC ADOPTS FINAL RULES TO THE INVESTMENT ADVISERS ACT OF 1940 IMPLEMENTING PROVISIONS OF THE DODD FRANK ACT SEC ADOPTS FINAL RULES TO THE INVESTMENT ADVISERS ACT OF 1940 IMPLEMENTING PROVISIONS OF THE DODD FRANK ACT 1. INTRODUCTION On 22 June 2011, the Securities and Exchange Commission ("SEC") adopted final

More information

The Final Volcker Rule and Its Extraterritorial Consequences for Non-U.S. Banks

The Final Volcker Rule and Its Extraterritorial Consequences for Non-U.S. Banks December 20, 2013 The Final Volcker Rule and Its Extraterritorial Consequences for Non-U.S. Banks Introduction Last week, the Board of Governors of the Federal Reserve System (the Fed ) and four other

More information

U.S. Agencies Approve Final Volcker Rule, Detailing Prohibitions and Compliance Regimes Applicable to Banking Entities Worldwide

U.S. Agencies Approve Final Volcker Rule, Detailing Prohibitions and Compliance Regimes Applicable to Banking Entities Worldwide U.S. Agencies Approve Final, Detailing Prohibitions and Compliance Regimes Applicable to Banking Entities Worldwide EXECUTIVE SUMMARY On December 10, 2013, the Board of Governors of the Federal Reserve

More information

DECEMBER 8, 2010 FINANCIAL MARKETS UPDATE. SEC Proposes Rules Exempting Certain Private Fund Advisers from Investment Adviser Registration.

DECEMBER 8, 2010 FINANCIAL MARKETS UPDATE. SEC Proposes Rules Exempting Certain Private Fund Advisers from Investment Adviser Registration. December 8, 2010 FINANCIAL MARKETS UPDATE SEC Proposes Rules Exempting Certain Private Fund Advisers from Investment Adviser Registration The Securities and Exchange Commission (the SEC ) has published

More information

F I R M B R O C H U R E

F I R M B R O C H U R E Part 2A of Form ADV: F I R M B R O C H U R E Dated: 03/24/2015 Contact Information: Bob Pfeifer, Chief Compliance Officer Post Office Box 2509 San Antonio, TX 78299 2509 Phone Number: (210) 220 5070 Fax

More information

Order Approving Extension of Conformance Period Under Section 13 of the Bank Holding Company Act

Order Approving Extension of Conformance Period Under Section 13 of the Bank Holding Company Act Order Approving Extension of Conformance Period Under Section 13 of the Bank Holding Company Act Section 619 of the Dodd-Frank Wall Street Reform and Consumer Protection Act added a new section 13 to the

More information

LVIP Dimensional Non-U.S. Equity RPM Fund. Summary Prospectus April 30, 2013

LVIP Dimensional Non-U.S. Equity RPM Fund. Summary Prospectus April 30, 2013 LVIP Dimensional Non-U.S. Equity RPM Fund (formerly LVIP Dimensional Non-U.S. Equity Fund) (Standard and Service Class) Summary Prospectus April 30, 2013 Before you invest, you may want to review the Fund

More information

The Volcker Rule (the Rule)1 prohibits most

The Volcker Rule (the Rule)1 prohibits most The Investment Lawyer Covering Legal and Regulatory Issues of Asset Management VOL. 21, NO. 4 APRIL 2014 The Volcker Rule Implications for Bank Collective Investment Funds and Adviser-Sponsored Group Trusts

More information

Client Alert July 21, 2010

Client Alert July 21, 2010 Corporate & Securities North America Client Alert July 21, 2010 For additional information, please see our Dodd-Frank Wall Street Reform And Consumer Protection Act website at http://www.bakermckenzie.com/fin

More information

Appendix Comprehensive Review of Regulation W

Appendix Comprehensive Review of Regulation W Appendix Comprehensive Review of Regulation W Overview of the Statute Overview of Section 23A. Section 23A prohibits a bank from initiating a covered transaction with an affiliate if, after the transaction,

More information

i-cthru Inc. Form ADV Part 2A Client Brochure

i-cthru Inc. Form ADV Part 2A Client Brochure i-cthru Inc. Tamarind Hill Road 33 Upper Prince s Quarter Saint Maarten, Dutch Caribbean Mailing address 1562 First Ave # 205-2863 New York, NY 10028-4004 USA http://www.i-cthru.com Form ADV Part 2A Client

More information

Part 2A of Form ADV: Firm Brochure

Part 2A of Form ADV: Firm Brochure Part 2A of Form ADV: Firm Brochure Item 1 Cover Page A. VL Capital Management LLC 55 West Church Street Orlando, FL 32801 Mailing Address: P.O. Box 1493 Orlando, FL 32802 Phone: (407) 412-6298 Effective

More information

The Final Volcker Rule s Potential Impact on Securitizations, Repackagings, Covered Bonds and other Structured Products

The Final Volcker Rule s Potential Impact on Securitizations, Repackagings, Covered Bonds and other Structured Products January 13, 2014 The Final Volcker Rule s Potential Impact on Securitizations, Repackagings, Covered Bonds and other Structured Products Key Takeaways for All Banks: > Final regulations implementing the

More information

Understanding Regulation U

Understanding Regulation U Understanding Regulation U What every deal lawyer needs to know about the margin regulations November 17, 2011 Craig Unterberg David Aman Federal Margin Regulations Background Authorized under Section

More information

GOLDMAN SACHS VARIABLE INSURANCE TRUST

GOLDMAN SACHS VARIABLE INSURANCE TRUST GOLDMAN SACHS VARIABLE INSURANCE TRUST Institutional and Service Shares of the Goldman Sachs Money Market Fund (the Fund ) Supplement dated July 29, 2015 to the Prospectuses and Summary Prospectuses, each

More information

MORGAN STANLEY Financial Supplement - 4Q 2015 Table of Contents

MORGAN STANLEY Financial Supplement - 4Q 2015 Table of Contents Page # MORGAN STANLEY Financial Supplement - 4Q 2015 Table of Contents 1. Quarterly Consolidated Financial Summary 2. Quarterly Consolidated Income Statement Information 3. Quarterly Consolidated Financial

More information

TIAA-CREF Individual & Institutional Services, LLC (A wholly-owned subsidiary of Teachers Insurance and Annuity Association of America) Statement of

TIAA-CREF Individual & Institutional Services, LLC (A wholly-owned subsidiary of Teachers Insurance and Annuity Association of America) Statement of TIAA-CREF Individual & Institutional Services, LLC (A wholly-owned subsidiary of Teachers Insurance and Annuity Association of America) Statement of Financial Condition (Unaudited) Index Page(s) Financial

More information

Quarterly Financial Supplement - 1Q 2016

Quarterly Financial Supplement - 1Q 2016 Quarterly Financial Supplement - 1Q 2016 Page # Consolidated Financial Summary... 1 Consolidated Income Statement Information... 2 Consolidated Financial Information and Statistical Data... 3 Consolidated

More information

Unison Advisors LLC. The date of this brochure is March 29, 2012.

Unison Advisors LLC. The date of this brochure is March 29, 2012. Unison Advisors LLC 2032 Belmont Road NW, #619 Washington, DC 20009 T 646 290 7697 F 646 290 5477 www.unisonadvisors.com The date of this brochure is March 29, 2012. This brochure provides information

More information

Wells Fargo/BlackRock Short Term Investment Fund COLLECTIVE FUND DISCLOSURE

Wells Fargo/BlackRock Short Term Investment Fund COLLECTIVE FUND DISCLOSURE Wells Fargo/BlackRock Short Term Investment Fund COLLECTIVE FUND DISCLOSURE Wells Fargo/BlackRock Short Term Investment Fund This disclosure summarizes information about the Short Term Investment Fund

More information

EATON VANCE HEXAVEST GLOBAL EQUITY FUND Supplement to Summary Prospectus dated December 1, 2015

EATON VANCE HEXAVEST GLOBAL EQUITY FUND Supplement to Summary Prospectus dated December 1, 2015 EATON VANCE HEXAVEST GLOBAL EQUITY FUND Supplement to Summary Prospectus dated December 1, 2015 1. The following replaces Fees and Expenses of the Fund : Fees and Expenses of the Fund This table describes

More information

TITLE VIII PAYMENT, CLEARING AND SETTLEMENT SUPERVISION

TITLE VIII PAYMENT, CLEARING AND SETTLEMENT SUPERVISION 1 0 1 TITLE VIII PAYMENT, CLEARING AND SETTLEMENT SUPERVISION SEC. 01. SHORT TITLE. This title may be cited as the Payment, Clearing, and Settlement Supervision Act of 00. SEC. 0. FINDINGS AND PURPOSES.

More information

128 Union Street, Suite 507 New Bedford, MA (888)

128 Union Street, Suite 507 New Bedford, MA (888) Wrap Fee Brochure September 8, 2014 128 Union Street, Suite 507 New Bedford, MA 02740 (888) 992-8601 www.barryinvestmentadvisors.com This wrap fee brochure provides information about the qualifications

More information

HSBC Mutual Funds. Simplified Prospectus June 8, 2015

HSBC Mutual Funds. Simplified Prospectus June 8, 2015 HSBC Mutual Funds Simplified Prospectus June 8, 2015 Offering Investor Series, Advisor Series, Premium Series, Manager Series and Institutional Series units of the following Funds: HSBC Global Corporate

More information

Investment Adviser Annual and Other Compliance Matters

Investment Adviser Annual and Other Compliance Matters 2013 Investment Adviser Annual and Other Compliance Matters This annual memorandum provides clients and friends of Finn Dixon & Herling with brief summaries of selected compliance matters relevant to investment

More information

Guidelines on Investment in Shares, Interest-in-Shares and Collective Investment Schemes for Islamic Banks

Guidelines on Investment in Shares, Interest-in-Shares and Collective Investment Schemes for Islamic Banks Interest-in-Shares and Collective Investment Schemes for Islamic Banks BNM/RH/ GL 002-5 PART A: INTRODUCTION AND OVERVIEW...1 1. Overview of the Guidelines... 1 2. Definitions... 2 3. Legal Enforceability

More information

Summary Prospectus September 28, 2015 PNC S&P 500 Index Fund Class A PIIAX Class C PPICX Class I PSXIX Class R4 PSPEX Class R5 PSFFX

Summary Prospectus September 28, 2015 PNC S&P 500 Index Fund Class A PIIAX Class C PPICX Class I PSXIX Class R4 PSPEX Class R5 PSFFX Summary Prospectus September 28, 2015 PNC S&P 500 Index Fund Class A PIIAX Class C PPICX Class I PSXIX Class R4 PSPEX Class R5 PSFFX Before you invest, you may want to review the Fund s Prospectus, which

More information

LVIP Dimensional U.S. Equity RPM Fund. Summary Prospectus April 30, 2013. (formerly LVIP Dimensional U.S. Equity Fund) (Standard and Service Class)

LVIP Dimensional U.S. Equity RPM Fund. Summary Prospectus April 30, 2013. (formerly LVIP Dimensional U.S. Equity Fund) (Standard and Service Class) LVIP Dimensional U.S. Equity RPM Fund (formerly LVIP Dimensional U.S. Equity Fund) (Standard and Service Class) Summary Prospectus April 30, 2013 Before you invest, you may want to review the Fund s Prospectus,

More information

Client Update Compensation Practices at Financial Institutions Targeted: Proposed Incentive Compensation Rules Aim to Curb Excessive Risk-Taking

Client Update Compensation Practices at Financial Institutions Targeted: Proposed Incentive Compensation Rules Aim to Curb Excessive Risk-Taking 1 Client Update Compensation Practices at Financial Institutions Targeted: Proposed Incentive Compensation Rules Aim to Curb Excessive Risk-Taking NEW YORK Michael P. Harrell mpharrell@debevoise.com Beth

More information

FREQUENTLY ASKED QUESTIONS ABOUT RIGHTS OFFERINGS

FREQUENTLY ASKED QUESTIONS ABOUT RIGHTS OFFERINGS FREQUENTLY ASKED QUESTIONS ABOUT RIGHTS OFFERINGS Background What is a rights offering? A rights offering typically provides an issuer s existing shareholders the opportunity to purchase a pro rata portion

More information

BACKGROUND. Client Update JUNE 15, 2015. NEW YORK Gregory J. Lyons gjlyons@debevoise.com. Andrew B. Butler abbutler@debevoise.com

BACKGROUND. Client Update JUNE 15, 2015. NEW YORK Gregory J. Lyons gjlyons@debevoise.com. Andrew B. Butler abbutler@debevoise.com 1 Client Update New Volcker Rule FAQs Clarify Foreign Public Fund Control Issues and Limit Use of Joint Venture Exemption but Leave Many Issues Unresolved NEW YORK Gregory J. Lyons gjlyons@debevoise.com

More information

Q4. How should institutions determine if they may exclude asset-based loans (ABL) from their definition of leveraged loans?

Q4. How should institutions determine if they may exclude asset-based loans (ABL) from their definition of leveraged loans? Board of Governors of the Federal Reserve System Federal Deposit Insurance Corporation Office of the Comptroller of the Currency Frequently Asked Questions (FAQ) for Implementing March 2013 Interagency

More information

ASPE AT A GLANCE Section 3856 Financial Instruments

ASPE AT A GLANCE Section 3856 Financial Instruments ASPE AT A GLANCE Section 3856 Financial Instruments December 2014 Section 3856 Financial Instruments Effective Date Fiscal years beginning on or after January 1, 2011 1 SCOPE Applies to all financial instruments

More information

FS Regulatory Brief. How the SEC s Custody Rule Impacts Private Fund Advisers. Introduction. The Custody Rule: An overview

FS Regulatory Brief. How the SEC s Custody Rule Impacts Private Fund Advisers. Introduction. The Custody Rule: An overview How the SEC s Custody Rule Impacts Private Fund Advisers Introduction Under the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank, or the Act ) and rules recently adopted by the Securities

More information

GOLDMAN SACHS BANK USA AND SUBSDIARIES

GOLDMAN SACHS BANK USA AND SUBSDIARIES GOLDMAN SACHS BANK USA AND SUBSDIARIES Consolidated Financial Statements As of and for the years ended December 31, 2014 and December 31, 2013 Financial Statements INDEX Page No. Consolidated Financial

More information

SEC Adopts Rules to Implement the Private Fund Investment Advisers Registration Act

SEC Adopts Rules to Implement the Private Fund Investment Advisers Registration Act SEC Adopts Rules to Implement the Private Fund Investment Advisers Registration Act Jason E. Brown and Joel A. Wattenbarger of Ropes & Gray LLP On June 22, 2011, the Securities and Exchange Commission

More information

SUBTITLE F IMPROVEMENTS TO THE ASSET-BACKED SECURITIZATION PROCESS. This Subtitle may be cited as the Credit Risk Retention Act of 2009.

SUBTITLE F IMPROVEMENTS TO THE ASSET-BACKED SECURITIZATION PROCESS. This Subtitle may be cited as the Credit Risk Retention Act of 2009. SUBTITLE F IMPROVEMENTS TO THE ASSET-BACKED SECURITIZATION PROCESS SEC. 1501. SHORT TITLE. This Subtitle may be cited as the Credit Risk Retention Act of 2009. SEC. 1502. CREDIT RISK RETENTION. The Securities

More information

Condensed Interim Consolidated Financial Statements of. Canada Pension Plan Investment Board

Condensed Interim Consolidated Financial Statements of. Canada Pension Plan Investment Board Condensed Interim Consolidated Financial Statements of Canada Pension Plan Investment Board September 30, 2015 Condensed Interim Consolidated Balance Sheet As at September 30, 2015 As at September 30,

More information

Alternative Investments Practice Client Alert: CLO 3.0 Volcker s Impact on CLOs

Alternative Investments Practice Client Alert: CLO 3.0 Volcker s Impact on CLOs February 18, 2014 CONTACT Deborah Festa Partner +1-213-892-4400 dfesta@milbank.com Derrick Zandpour Associate +1-213-892-4677 dzandpour@milbank.com Alternative Investments Practice Client Alert: CLO 3.0

More information

Financial Institutions Regulation Group Client Alert:

Financial Institutions Regulation Group Client Alert: December 17, 2013 CONTACT Wayne Aaron Partner +1-212-530-5284 waaron@milbank.com Douglas Landy Partner +1-212-530-5234 dlandy@milbank.com John Williams Partner +1-212-530-5537 jwilliams@milbank.com Financial

More information

GENWORTH MI CANADA INC.

GENWORTH MI CANADA INC. Condensed Consolidated Interim Financial Statements (In Canadian dollars) GENWORTH MI CANADA INC. Three and six months ended June 30, 2015 and 2014 Condensed Consolidated Interim Statements of Financial

More information

Final Foreign Private Adviser and Private Fund Adviser Rules Issued by the U.S. Securities and Exchange Commission.

Final Foreign Private Adviser and Private Fund Adviser Rules Issued by the U.S. Securities and Exchange Commission. July 2011 Final Foreign Private Adviser and Private Fund Adviser Rules Issued by the U.S. Securities and Exchange Commission. Contents Implications for Non-U.S. Investment Advisers On June 22, 2011, the

More information

Indian Accounting Standard (Ind AS) 32 Financial Instruments: Presentation

Indian Accounting Standard (Ind AS) 32 Financial Instruments: Presentation Indian Accounting Standard (Ind AS) 32 Financial Instruments: Presentation Contents Paragraphs Objective 2 3 Scope 4 10 Definitions 11 14 Presentation 15 50 Liabilities and equity 15 27 Puttable instruments

More information

April 8, 2013. I. Background.

April 8, 2013. I. Background. April 8, 2013 The Extra-territorial Reach of the Broker-Dealer Registration Requirements Under the U.S. Securities Exchange Act of 1934; the Staff of the Securities and Exchange Commission Addresses Frequently

More information

Robin Hood Online Financial Planning Development, LLC

Robin Hood Online Financial Planning Development, LLC Item 1 - Cover Page Robin Hood Online Financial Planning Development, LLC 2808 Kensington Road Winston-Salem, NC 27106 Phone: (336) 723-6030 gorobinhood@triad.rr.com www.gorobinhood.com July 17, 2013 Brochure

More information

afg Paris, 13 February 2012

afg Paris, 13 February 2012 afg Paris, 13 February 2012 AFG COMMENTS On Restrictions on Proprietary Trading and Certain Interests in, and Relationships with, Hedge Funds and Private Equity Funds; Proposed Rule; 76 Federal Register

More information

BANCODeMEXICO. Ref. ACC/2012C-011 February 14, 2012

BANCODeMEXICO. Ref. ACC/2012C-011 February 14, 2012 BANCODeMEXICO GOBERNADOR Ben Bernanke Chairman of the Federal Reserve Board of Governors of the Federal Reserve System 20 th Street and Constitution Avenue, NW Washington, D.C. 20551 The United States

More information

Market Linked Certificates of Deposit

Market Linked Certificates of Deposit Market Linked Certificates of Deposit This material was prepared by Wells Fargo Securities, LLC, a registered brokerdealer and separate non-bank affiliate of Wells Fargo & Company. This material is not

More information

Item 2 Material Changes

Item 2 Material Changes Item 1 Cover Page Prutzman Wealth Management, LLC dba Prutzman Wealth Management 201 W. Liberty Street, Suite 207 Reno, NV 89501 (800) 865-4202 www.prutzmanwm.com 8/31/2015 This Brochure provides information

More information

ADVISORSHARES YIELDPRO ETF (NASDAQ Ticker: YPRO) SUMMARY PROSPECTUS November 1, 2015

ADVISORSHARES YIELDPRO ETF (NASDAQ Ticker: YPRO) SUMMARY PROSPECTUS November 1, 2015 ADVISORSHARES YIELDPRO ETF (NASDAQ Ticker: YPRO) SUMMARY PROSPECTUS November 1, 2015 Before you invest in the AdvisorShares Fund, you may want to review the Fund s prospectus and statement of additional

More information

Guidelines on Investment in Shares, Interest-in-Shares and Collective Investment Schemes

Guidelines on Investment in Shares, Interest-in-Shares and Collective Investment Schemes Interest-in-Shares and Collective BNM/RH/GL 001-30 Prudential Financial Policy Department PART A INTRODUCTION AND OVERVIEW... 1 1. Overview of the Guidelines... 1 2. Definitions... 1 3. Legal Enforceability

More information

SEC Proposes Large Trader Reporting System

SEC Proposes Large Trader Reporting System Financial Institution Advisory and Financial Regulatory Group May 2010 SEC Proposes Large Trader Reporting System I. Overview II. Introduction: Identifying Large Traders On April 14, 2010, the Securities

More information

(expenses that you pay each year as a percentage of the value of your investment)

(expenses that you pay each year as a percentage of the value of your investment) July 31, 2015 SUMMARY PROSPECTUS SAAT Core Market Strategy Allocation Fund (SKTAX) Class A Before you invest, you may want to review the Fund s prospectus, which contains information about the Fund and

More information

Financial Services Investment Companies (Topic 946)

Financial Services Investment Companies (Topic 946) No. 2013-08 June 2013 Financial Services Investment Companies (Topic 946) Amendments to the Scope, Measurement, and Disclosure Requirements An Amendment of the FASB Accounting Standards Codification The

More information

STUDY & RECOMMENDATIONS ON PROHIBITIONS ON PROPRIETARY TRADING & CERTAIN RELATIONSHIPS WITH HEDGE FUNDS & PRIVATE EQUITY FUNDS

STUDY & RECOMMENDATIONS ON PROHIBITIONS ON PROPRIETARY TRADING & CERTAIN RELATIONSHIPS WITH HEDGE FUNDS & PRIVATE EQUITY FUNDS STUDY & RECOMMENDATIONS ON PROHIBITIONS ON PROPRIETARY TRADING & CERTAIN RELATIONSHIPS WITH HEDGE FUNDS & PRIVATE EQUITY FUNDS FINANCIAL STABILITY OVERSIGHT COUNCIL Completed pursuant to section 619 of

More information

GAO PROPRIETARY TRADING. Regulators Will Need More Comprehensive Information to Fully Monitor Compliance with New Restrictions When Implemented

GAO PROPRIETARY TRADING. Regulators Will Need More Comprehensive Information to Fully Monitor Compliance with New Restrictions When Implemented GAO United States Government Accountability Office Report to Congressional Committees July 2011 PROPRIETARY TRADING Regulators Will Need More Comprehensive Information to Fully Monitor Compliance with

More information

G&G Planning Concepts, Inc. Part 2A of Form ADV The Brochure

G&G Planning Concepts, Inc. Part 2A of Form ADV The Brochure G&G Planning Concepts, Inc. Part 2A of Form ADV The Brochure 9 East 40 th Street, 15 th Floor, New York, NY 10016 www.gassmanfg.com Updated: March 28, 2014 This brochure provides information about the

More information

15 February 2012. Elizabeth M. Murphy Secretary Securities and Exchange Commission 100 F Street, NE Washington, DC 20549-1090

15 February 2012. Elizabeth M. Murphy Secretary Securities and Exchange Commission 100 F Street, NE Washington, DC 20549-1090 Elizabeth M. Murphy Secretary Securities and Exchange Commission 100 F Street, NE Washington, DC 20549-1090 Re: Prohibitions and Restrictions on Proprietary Trading and Certain Interests in, and Relationships

More information

Chief Executive Officers of All National Banks, Deputy Comptrollers (District) and All Examining Personnel

Chief Executive Officers of All National Banks, Deputy Comptrollers (District) and All Examining Personnel O BC - 196 BANKING ISSUANCE Comptroller of the Currency Administrator of National Banks Type: Banking Circular Subject: Securities Lending To: Chief Executive Officers of All National Banks, Deputy Comptrollers

More information

RBC Money Market Funds Prospectus

RBC Money Market Funds Prospectus RBC Money Market Funds Prospectus November 25, 2015 Prime Money Market Fund RBC Institutional Class 1: RBC Institutional Class 2: RBC Select Class: RBC Reserve Class: RBC Investor Class: TPNXX TKIXX TKSXX

More information

GOLDMAN SACHS EXECUTION & CLEARING, L.P. and SUBSIDIARIES

GOLDMAN SACHS EXECUTION & CLEARING, L.P. and SUBSIDIARIES CONSOLIDATED STATEMENT of FINANCIAL CONDITION PURSUANT to RULE 17a-5 of the SECURITIES and EXCHANGE COMMISSION As of June 30, 2010 30 HUDSON STREET JERSEY CITY, NJ 07302 CONSOLIDATED STATEMENT OF FINANCIAL

More information

American Funds Insurance Series Portfolio Series. Prospectus May 1, 2015. American Funds Managed Risk Global Allocation Portfolio

American Funds Insurance Series Portfolio Series. Prospectus May 1, 2015. American Funds Managed Risk Global Allocation Portfolio American Funds Insurance Series Portfolio Series Prospectus May 1, 2015 Class 4 shares American Funds Global Growth Portfolio American Funds Growth and Income Portfolio Class P2 shares American Funds Managed

More information

Basis of the Financial Stability Oversight Council s Final Determination Regarding General Electric Capital Corporation, Inc.

Basis of the Financial Stability Oversight Council s Final Determination Regarding General Electric Capital Corporation, Inc. Introduction Basis of the Financial Stability Oversight Council s Final Determination Regarding General Electric Capital Corporation, Inc. Pursuant to section 113 of the Dodd-Frank Wall Street Reform and

More information

THE WORLD MARKETS COMPANY PLC DESCRIPTION OF SERVICES AND CONFLICTS OF INTEREST DISCLOSURE STATEMENT MARCH 1, 2015

THE WORLD MARKETS COMPANY PLC DESCRIPTION OF SERVICES AND CONFLICTS OF INTEREST DISCLOSURE STATEMENT MARCH 1, 2015 THE WORLD MARKETS COMPANY PLC DESCRIPTION OF SERVICES AND CONFLICTS OF INTEREST DISCLOSURE STATEMENT MARCH 1, 2015 The World Markets Company plc (the World Markets Company ) provides a global foreign exchange

More information

Harmonic Investment Advisors

Harmonic Investment Advisors Item 1 Cover Page Harmonic Investment Advisors 1020 W. Main Ave Ste 480 Boise, ID 83702 P: 208-947-3345 F: 208-947-9039 Website: Harmonicadvisors.com This brochure provides information about the qualifications

More information

American Bankers Association. Sample Glossary of Collective Investment Fund Terms for Disclosures to Retirement Plan Participants

American Bankers Association. Sample Glossary of Collective Investment Fund Terms for Disclosures to Retirement Plan Participants American Bankers Association Sample Glossary of Collective Investment Fund Terms for Disclosures to Retirement Plan Participants January 5, 2012 2 PART 1 Frequently Asked Questions (FAQs) About Collective

More information

Model Template for 165(d) Tailored Resolution Plan

Model Template for 165(d) Tailored Resolution Plan Federal Reserve System Reporting Requirements Associated with Regulation QQ (Resolution Plans Required) OMB Number 7100-0346 Approval expires January 31, 2016 Model Template for 165(d) Tailored Resolution

More information

Condensed Interim Consolidated Financial Statements of. Canada Pension Plan Investment Board

Condensed Interim Consolidated Financial Statements of. Canada Pension Plan Investment Board Condensed Interim Consolidated Financial Statements of Canada Pension Plan Investment Board December 31, 2015 Condensed Interim Consolidated Balance Sheet As at December 31, 2015 (CAD millions) As at December

More information

PRIME DEALER SERVICES CORP. STATEMENT OF FINANCIAL CONDITION AS OF DECEMBER 31, 2014 AND REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

PRIME DEALER SERVICES CORP. STATEMENT OF FINANCIAL CONDITION AS OF DECEMBER 31, 2014 AND REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM PRIME DEALER SERVICES CORP. STATEMENT OF FINANCIAL CONDITION AS OF DECEMBER 31, 2014 AND REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ******** REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING

More information

TITLE 5 BANKING DELAWARE ADMINISTRATIVE CODE

TITLE 5 BANKING DELAWARE ADMINISTRATIVE CODE TITLE 5 BANKING 900 Regulations Governing Business of Banks and Trust Companies 1 905 Loan Limitations: Credit Exposure to Derivative Transactions 1.0 Purpose This regulation sets forth the rules for calculating

More information