SEC Open Meeting, March 2, 2011

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Dodd-Frank Timeline, Incentive-Based Compensation Arrangements, SEC
Proposal Date Comment Deadline Final Rule Issue
April 14, 2011 May 31, 2011 TBA
Dodd-Frank Timeline, Clearing Agency Standards for Operation and Governance, SEC
Proposal Date Final Rule Issue Effective Date Reopened Comment Period Deadline
March 16, 2011 November 2, 2012 January 2, 2013 July 22, 2013
Dodd-Frank Timeline, Ownership Limitations and Governance Requirements for Swap Entities, SEC Regulation MC
Proposal Date Comment Deadline Final Rule Issue
October 26, 2010 April 29, 2011 Late 2011/Early 2012
Timeline, References to Credit Ratings in Money Market Fund Rules, SEC
Proposal Date Re-proposed Rule Comment Deadline
March 9, 2011 July 24, 2014 60 Days After Federal Register

The U.S. Securities and Exchange Commission (SEC) public meeting focused on the issuance of proposed rules under the Dodd-Frank Wall Street Reform and Consumer Protection Act concerning:

  • incentive-based compensation practices at certain financial institutions (Section 956);
  • the operation and governance of clearing agencies;
  • an extended comment period for Regulation MC; and
  • references to credit ratings in the Securities Act of 1933 and the Investment Company Act of 1940.

Archived webcast:

Meeting Summary

Topics of Discussion

  • Rules related to incentive-based compensation, including annual reports, prohibition and deferral of certain compensation, and compliance policies and procedures;
  • Rules related to clearing agency operation and governance, including standards for risk management and operation, confidentiality safeguards and procedures, conflict of interest procedures, minimum governance standards for boards of directors, the designation of a chief compliance officer, and security-based swap information dissemination;
  • A vote to extend the comment period for Regulation MC, concerning ownership limitations and governance requirements for security-based swap clearing agencies, security-based swap execution facilities, and national securities exchanges with respect to security-based swaps;
  • Rules eliminating the credit rating reference in determining permissible invested securities for money market funds, as well as removing credit ratings in three other areas: repurchase agreements, certain business and industrial development company (BIDCO) investments, and shareholder reports.

Related Documents

Incentive-Based Compensation Arrangements

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Read proposed rule.png

Clearing Agency Standards for Operation and Governance

Read comment letters.png
Read proposed rule.png

Ownership Limitations and Governance Requirements for Security-Based Swap Clearing Agencies, Security-Based Swap Execution Facilities, and National Securities Exchanges With Respect to Security-Based Swaps Under Regulation MC

Read comment letters.png
Read proposed rule.png

References to Credit Ratings in Certain Investment Company Act Rules and Forms

Read comment letters.png
Read proposed rule.png

Speakers

Chairman Mary L. Schapiro; whose statements include:

  • A summary of the proposed rules.
  • An explanation of rules regarding incentive-based compensation arrangements.
  • An explanation of how one proposed rule will ease stress on the financial system caused by poorly functioning clearing agencies, and a note about extending the comment period for Regulation MC.
  • A discussion of the replacement of references to credit ratings in the Investment Company Act with alternative criteria, "remov[ing] the impression that money market fund securities may be selected solely because of their ratings."
  • A summary of the three other areas affected by removing credit ratings references: repurchase agreements, BIDCOs, and shareholder reports.

Commissioner Troy A. Paredes, whose statements include:

  • Declining support for the proposal related to incentive-based compensation: "My primary objections relate to the rulemaking’s approach toward regulating incentive-based compensation arrangements at broker-dealers and investment advisers, as well as other financial institutions, with assets of $50 billion or more."
  • Support for the proposal concerning operation and governance standards for clearing agencies.
  • Six significant questions regarding the application of the proposal to remove credit ratings references from the Investment Company Act of 1940.

Commissioner Luis A. Aguilar, whose statements include:

  • Serious concern regarding the removal of credit ratings: "Eliminating the credit rating requirement and leaving only the internal, subjective standard is to take away a vital investor protection. Removing this objective, external determination will create an opportunity for those that will chase yield at the expense of investing in the highest quality securities."

Commissioner Elisse B. Walter, whose statements include:

  • Concerns regarding the overly broad definition of "incentive-based compensation" and important considerations for public comment.

Commissioner Kathleen L. Casey, whose statements include:

  • Declining support for the incentive-based compensation proposal, due to the fact that the prescription presented by the Commission may not be necessary or effective.

References

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