In This Issue:

- Federal Banking Agencies Release Statement on Annual Stress Tests at Medium-Sized Financial Companies

- Extension of Transitional Provisions for Exposures to CCPs Formally Announced

- Amending Regulation on Own Funds Requirements in Force

- European Banking Authority Publishes Questionnaire on Regulatory Equivalence of Third Countries

- Final Draft Regulatory Technical Standards on Advanced Measurement Approaches for Calculating Capital Requirements for Operational Risk

- UK Prudential Regulation Authority Publishes Final Rules on Approach to Regulating Liquidity

- Basel Committee on Banking Supervision Launches Consultation on Interest Rate Risk in the Banking Book

- US Securities and Exchange Commission Provides Additional Analysis Related to Proposed Pay Ratio Disclosure Rules

- International Organization of Securities Commissions Publishes Final Report on Good Practices on Reducing Reliance on CRAs in Asset Management

- US Commodity Futures Trading Commission Issues No-Action Relief to International Financial Institutions from Broker and Commodity Trading Advisor Registration

- European Commission Announces Extension of Exemption from Clearing Obligation for Pension Funds

- Lloyds Banking Group Fined for Failures to Handle PPI Complaints Fairly

- UK Financial Conduct Authority Consults on Fair, Reasonable and Non-Discriminatory Access to Regulated Benchmarks

- EU Revised Anti-Money Laundering and Terrorist Financing Framework Comes into Effect

- UK Changes to Pension Transfer Rules Come into Effect

- Bank of England Appoints Executive Director for Banking, Payments and Financial Resilience

- Financial Conduct Authority Appoints Enforcement and Market Director and Risk and Compliance Director

- Upcoming Events

- Excerpt from Federal Banking Agencies Release Statement on Annual Stress Tests at Medium-Sized Financial Companies:

On June 2, 2015, the US Board of Governors of the Federal Reserve System, the US Federal Deposit Insurance Corporation and the US Office of the Comptroller of the Currency (collectively, the Federal banking agencies), released a statement reiterating the disclosure requirements for the annual company-run stress tests conducted by financial institutions with total consolidated assets between $10 billion and $50 billion. In the statement, the Federal banking agencies emphasized the requirement for such medium-sized firms to disclose certain information regarding the annual stress tests, including: (i) a description of the types of risks included in the stress test; (ii) a summary description of the methodologies used to conduct the stress test; (iii) estimates of losses, revenue, and net income; (iv) post-stress capital ratios; and (v) an explanation of the most significant causes for the changes in regulatory capital ratios. In addition, as the Federal banking agencies have previously stated, the company-run stress tests are intended to produce hypothetical results and are not intended to be forecasts or expected outcomes.