Financial Regulatory Developments Focus - 28 April 2014

In this newsletter, we provide a snapshot of the principal European, US and global financial regulatory developments of interest to banks, investment firms, broker-dealers, market infrastructures, asset managers and corporates.

Our latest quarterly Governance & Securities Law Focus newsletter is available at: http://www.shearman.com/~/media/Files/NewsInsights/Publications/2014/04/Governance-and-Securities-Europe-Bulletin-CMAM-041014.pdf.

Derivatives CFTC Staff Issues Time-Limited No-Action Letter on the Applicability of Oral Recording Requirements

On 25 April 2014, the US Commodity Futures Trading Commission's ("CFTC") Division of Swap Dealer and Intermediary Oversight and Division of Market Oversight ("Divisions") issued a time-limited no-action letter that provides relief to commodity trading advisors that are members of designated contract markets or swap execution facilities. The relief covers the oral recording requirement set forth in CFTC Regulation 1.35(a), in connection with the execution of swaps. The letter extends no-action relief that previously was granted by the Divisions in CFTC Letter Nos. 13-77 and 14-33.

The letter issued on 25 April will expire on 31 December 2014.

The CFTC no-action letter is available at:

http://www.cftc.gov/ucm/groups/public/@lrlettergeneral/documents/letter/14-60.pdf.

Regulatory Capital OCC Proposes Increase in Assessments for National Banks and Federal Savings Associations with Total Assets of More Than $40 Billion

On 28 April 2014, the US Office of the Comptroller of the Currency ("OCC") published a notice of proposed rulemaking in the Federal Register seeking comment on a proposal to raise assessments on national banks and federal savings associations with total assets over $40 billion.

Under the proposal, the marginal assessment rate for national banks and federal savings associations ("FSAs") with more than $40 billion in assets would increase by 14.5 percent beginning 30 September 2014. The increase in assessments would range from 0.32 percent to 14 percent, depending on the total assets of the institution as reflected on its 30 June 30 2014 Consolidated Report of Condition and Income. The average increase in assessments for affected banks and FSAs would be 12 percent. The proposal would not increase assessment rates for banks and FSAs with $40 billion or less in total assets.

Comments on the notice are requested by 12 June 2014. The proposal also requests comment on a conforming amendment to...