Financial Industry Developments

CFPB Finalizes Minor Changes to "Know Before You Owe" Rules

On January 20, CFPB finalized two minor modifications to the "Know Before You Owe" mortgage disclosure rules. The changes, which were proposed in October 2014, address when consumers will receive updated disclosures after locking in an interest rate, and how consumers receive information regarding certain construction loans. The "Know Before You Owe" mortgage disclosure rule, including the changes finalized today, will be effective August 1, 2015. Release. Final Rule.

The Fed Forms Advisory Council

On January 16, the Fed announced the formation of a new advisory council that will be comprised of individuals with consumer- and community development-related expertise. The council will meet semiannually with the Fed's board to offer perspective on community and consumer needs. Release.

Fee Rate Advisory #3 for Fiscal Year 2015

On January 15, the SEC announced that starting on Feb. 14, 2015, the fee rates applicable to most securities transactions will be set at $18.40 per million dollars. Each SRO will continue to pay the Commission a rate of $22.10 per million for transactions occurring on charge dates through Feb. 13, 2015, and a rate of $18.40 per million for transactions occurring on charge dates on or after Feb. 14, 2015. Release. Order.

Rating Agency Developments

On January 22, Fitch released its rating criteria for rating RMBS in Latin America. Criteria.

On January 22, Moody's released its global methodology for rating small and medium size enterprise balance sheet securitizations. Release.

On January 20, Moody's released its approach to rating ABS backed by equipment lease and loans. Release.

On January 20, Moody's released its approach to rating consumer loan backed ABS. Release.

On January 20, Moody's released its approach to rating RMBS Using the MILAN Framework. Release.

On January 20, Moody's released its global approach to rating Auto Loan- and Lease-Backed ABS. Release.

On January 20, Moody's released its global approach to rating financial guarantors. Release. Announcement.

On January 20, Moody's released its global approach to monitoring life insurance ABS. Release.

On January 20, Fitch released its rating criteria for rating Non-Performing Loan Securitisations. Criteria.

On January 16, Kroll released its methodology for rating single-family rentals. Methodology.

On January 15, DBRS released its methodology for rating companies in the asset management industry. Release.

Distressed Debt and Restructuring Developments

New! Distressed Download Blog

We are excited to announce the launch of our blog, Distressed Download, a resource for the latest news and industry trends in the distressed debt and restructuring markets.

This blog is published by lawyers from Orrick's distinguished Restructuring practice and will cover global industry updates, focusing particularly on distressed assets & alternative investments, bankruptcy litigation and financial problems of municipalities, among many other topics. We will also include details on upcoming events and practice developments of interest.

To view the full site, please click here, and be sure to check in weekly for industry updates.

European Financial Industry Developments

FCA Launches Consultation on Competition Powers

The Financial Conduct Authority (FCA) obtains concurrent competition powers on April 1, 2015, enabling it to enforce the prohibitions on anti-competitive behaviour in the Competition Act 1998 (CA98) and the Treaty on the Functioning of the European Union (TFEU) in relation to the provision of financial services. The FCA will also have powers to carry out market studies, and make market investigation references to the Competition and Markets Authority (CMA) under the Enterprise Act 2002 (EA02), in relation to the provision of financial services.

On January 15, 2015, the FCA launched a consultation seeking views on draft guidance papers and amendments to the FCA handbook in relation to their exercise of these powers. Consultation closes on March 13, 2015. Consultation.

Capital Requirements (Capital Buffers and Macro-prudential Measures) (Amendment) Regulations 2015 published

On January 13, 2015, the Capital Requirements (Capital Buffers and Macro-prudential Measures) (Amendment) Regulations 2015 were published.

The Regulations amend the Capital Requirements (Capital Buffers and Macro-prudential Measures) Regulations 2014 to introduce a systemic risk buffer (SRB) that will apply to ring-fenced banks (RFBs) and certain large building societies. This measure implements Articles 133 and 134 of the Capital Requirements Directive IV (CRD IV).

The Financial Policy Committee (FPC) will be responsible for setting out the framework for determining which institutions should hold the buffer and, if so, how large the buffer should be. It will need to publish this methodology by May 31, 2016. The Prudential Regulation Authority (PRA) will be responsible for applying the framework and will have ultimate discretion over which firms must hold the buffer and its size.

The Regulations were made on January 12, 2015 and come into force, unless otherwise stated, on May 31, 2016. The systemic risk buffer is applicable from January 1, 2019. Regulations.

 

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