Regulatory Reform
Important financial regulatory reform legislation, including core terms and concepts, are summarized below:
Investor Protection Act of 2009 – House bill, October 15, 2009
Key terms in legislation:
- Fiduciary Duty of Investment Advisors - old term, defined in Glossary
- Fiduciary Duty of Investment Advisors, Broker Dealers - new defined term
House Committee on Financial Services, Regulatory Reform
Private Fund Investment Advisers Registration Act of 2009 – House bill, October 15, 2009
Key terms in legislation:
- Systemic Risk Data Reporting - new defined term
- (2) “REQUIRED INFORMATION- The records and reports required to be maintained or filed with the Commission under this subsection shall include, for each private fund advised by the investment adviser--
- (A) the amount of assets under management;
- (B) the use of leverage (including off-balance sheet leverage);
- (C) counterparty credit risk exposures;
- (D) trading and investment positions;
- (E) trading practices; and
- (F) such other information as the Commission, in consultation with the Board of Governors of the Federal Reserve System, determines necessary or appropriate in the public interest and for the protection of investors or for the assessment of systemic risk.
- (7) DISCLOSURES OF CERTAIN PRIVATE FUND INFORMATION- An investment adviser registered under this Act shall provide such reports, records, and other documents to investors, prospective investors, counterparties, and creditors, of any private fund advised by the investment adviser as the Commission, by rule or regulation, may prescribe as necessary or appropriate in the public interest and for the protection of investors or for the assessment of systemic risk.
House Committee on Financial Services, Regulatory Reform
Ethics Metrics Products and Services: Measuring and Rating Systemic Risk, Safety and Soundness, Well-Managed, Well Capitalized - (2) “REQUIRED INFORMATION- The records and reports required to be maintained or filed with the Commission under this subsection shall include, for each private fund advised by the investment adviser--
Financial Stability Improvement Act of 2009 – House bill, October 27, 2009
Key terms in legislation:
- Prompt Corrective Action - old term, defined in Glossary
- Well Managed - old term, defined in Glossary
- Well Capitalized - old term, defined in Glossary
- Systemic Resolution Fund - new defined term
- Financial Company - new defined term
House Committee on Financial Services, Regulatory Reform
Restoring American Financial Stability Act of 2009 – Senate bill, November 10, 2009
Key terms in legislation:
- Prompt Corrective Action - old term, defined in Glossary
- Well Managed - old term, defined in Glossary
- Well Capitalized - old term, defined in Glossary
- Safety and soundness - old term, defined in Glossary
- Corporate Governance Listing Standards - old term, defined in Glossary
- Private Fund - new defined term to regulate advisers to hedge funds
- Records and Reports of Private Funds on Systemic Risk - new defined term
- Systemic Risk - new defined term
- Systemic Risk Data Collection, Investment Advisers - new defined term
‘‘(3) REQUIRED INFORMATION.—The records and reports required to be filed with the Commission under this subsection shall include, for each private fund advised by the investment adviser, a description of—- ‘‘(A) the amount of assets under management, use of leverage;
- “‘(B) counterparty credit risk exposure;
- ‘‘(C) trading and investment positions;
- ‘‘(D) valuation methodologies of the fund;
- ‘‘(E) types of assets held;
- ‘‘(F) side arrangements or side letters, whereby certain investors in a fund obtain more favorable rights or entitlements than other investors;
- ‘‘(G) trading practices; and
- ‘‘(H) such other information as the Commission, in consultation with the Agency for Financial Stability, deems necessary and appropriate in the public interest and for the protection of investors or for the assessment of systemic risk.
- Systemic Resolution Fund - new defined term
- Financial Company - new defined term
- Specified U.S. Nonbank Financial Company - new defined term
Senate Bill
Senate Banking Committee
House
Ethics Metrics Products and Services: Measuring and Rating Systemic Risk, Safety and Soundness, Well-Managed, Well Capitalized
Glossary of regulations – a service of Ethics Metrics
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