Client Alerts & Publications Archive

The Securities and Exchange Commission recently adopted amendments to the broker-dealer net capital rule, customer protection rule and related rules under the Securities Exchange Act of 1934.

In a recent regulatory notice, the Financial Industry Regulatory Authority, Inc. provided guidance on disclosure of fees in communications concerning retail brokerage accounts and IRAs.

In this issue:

• OCC Issues Statement on Oversight of Debt Collection and Debt Sales
• Banking Regulators Encourage Financial Institutions to Work with Troubled Student Loan Borrowers
• Actions on Internet Lending

On July 29, 2013, in the first case of its kind, the Securities and Exchange Commission charged West Clark Community Schools, an Indiana school district, with falsely stating in an official statement that the school district was fully compliant with its duty to provide annual financial reporting and material event notices as required by prior continuing disclosure undertakings. 

On July 29, 2013, Governor Quinn signed into law House Bill 2418, as amended by Senate Amendments 2 and 3; Public Act 98-0115. The Act makes several changes to the Election Code, two of which are discussed in this client alert.

The US banking regulators have issued final Basel III-related capital rules.

On July 19, 2013, the Securities and Exchange Commission filed a Complaint in the U.S. District Court for the Southern District of Florida, charging the City of Miami and the its former Budget Director with violations of the anti-fraud provisions of the federal securities laws. The SEC also charged the Budget Director with aiding and abetting violations.

On July 12, 2013, the IRS released Notice 2013-43 postponing the start of FATCA withholding by six months, to June 30, 2014. Also, certain jurisdictions will be treated as having an effective IGA, even though that IGA may not actually have entered into force.

In this issue:

• Illinois Firearms Concealed Carry Act
• FinCEN Eases CTR Reporting Requirements for Certain Armored Car Deposits
• Debt Collection Activity and UDAAP

The Internal Revenue Code requires issuers of qualified zone academy bonds to spend 100 percent of the sale proceeds and investment earning thereon for qualified purposes within three years of the date of issuance of the QZABs.

In this issue:

•  FRB Guidance on Communication of Supervisory Findings
•  Mortgage Rules Update

On July 2, the Board of Governors of the Federal Reserve System adopted a final rule revising its risk-based and leverage capital requirements. The changes to the Advanced Approaches framework will be effective January 1, 2014 and the new Standardized Approach framework will be effective January 1, 2015. While we are still in the process of reviewing the rule and the release (it totals 971 pages), our initial impressions of the securitization sections of the rule are set forth in this client alert.

In this issue:

• Rule Governing Garnishment of Deposit Accounts Containing Federal Benefit Payments
• Updates to the Mortgage Rules
• Senate Hearing on Private Student Loans

The IRS recently released on its website Tax Exempt Bonds’ Publication 5091, Voluntary Compliance for Tax-Exempt and Tax Credit Bonds. Part one of the publication is an introduction to tax-advantaged bond compliance, intended to help issuers of tax-advantaged bonds comply with related Federal tax law requirements. Part two is a summary of the Tax Exempt Bonds’ Voluntary Closing Agreement Program (TEB VCAP).

On June 13, 2013, eight former members of the board of directors overseeing five registered investment companies advised by Morgan Keegan Asset Management, Inc. settled with the Securities and Exchange Commission, accepting a cease-and-desist order to cease committing certain violations of the federal securities laws stemming from inadequacies in the Funds’ fair valuation procedures.

In 2012 the Commodity Futures Trading Commission significantly narrowed the CFTC Rule 4.5 exclusion from the definition of commodity pool operator available to operators of investment companies registered under the Investment Company Act of 1940.

House Bill 2418, as amended by Senate Amendments 2 and 3, has passed both houses of the General Assembly and awaits action by the Governor. The Bill makes several changes to the Election Code, two of which are discussed in this alert.

On June 11, 2013, the Financial Industry Regulatory Authority released the Investor Alert Alternative Funds are not your Typical Mutual Funds as a part of efforts to raise investor awareness regarding registered funds that use investment strategies that differ from the typical buy-and-hold investment strategies.

FINRA recently posted a targeted examination letter to its website related to social media communications. Broker-dealers that receive the sweep letter are required to provide certain information to FINRA relating to their use and supervision of social media communications.

In this issue:

• American Bankers Association and Others Request Guidance on the New Mortgage Lending Rules and Fair Lending
• CFPB Study on Overdraft Programs
• Mandatory Arbitration
• CFPB Update on Mortgage Rules

In SIGA Technologies, Inc. v. PharmAthene, Inc., the Delaware Supreme Court held that under Delaware law agreements to negotiate in good faith in accordance with the terms set forth in a term sheet are enforceable.

The Division of Clearing and Risk of the Commodity Futures Trading Commission recently issued no-action relief for certain treasury affiliates within non-financial companies from the clearing requirements of Section 2(h)(1) of the Commodity Exchange Act.

in this issue:

• Checking Account Disclosures, Overdraft Practices and Dispute Resolution
• FDIC Settlements for Unfair and Deceptive Practices related to Reloadable Prepaid Cards
• CFPB Guidance on Refinancing Student Debts

In this issue:

• CFPB Amends Regulation Z to Help Enable Stay-at-Home Spouses/Partners to Qualify for Credit Cards
• Federal Reserve Board issues Guidance on Mortgage Collection, Loss Mitigation and Foreclosures
• CFPB Amends Regulation Z Ability-to-Repay Rule

Chapman's March 8 Client Alert on ABCP short-term structured financing was published in the May 2013 issue of The Banking Law Journal. 

On May 22, 2013 the Securities and Exchange Commission imposed a Cease-and Desist Order against the City of South Miami, Florida for violations of the anti-fraud provisions of Section 17(a) of the Securities Act of 1933.

House Bill 983, as amended by Senate Amendments 1 and 2, amends the alternate bond provisions contained in the Local Government Debt Reform Act of the State of Illinois for alternate bonds payable solely from enterprise revenues. “Enterprise revenues” means the revenues of a utility or revenue producing enterprise from which revenue bonds may be payable.

Beginning June 10, 2013, many securitization issuers could be required to submit newly executed interest rate swaps for clearing under Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) and implementing regulations.

The Commission’s recent Cease-and-Desist Order against the City of Harrisburg found that post-issuance financial information made available by the City and public statements made by City officials contained material misstatements and omissions, and violated the antifraud provisions of the federal securities laws.

In this issue:

• COPPA FAQS and Effective Date of the Revised COPPA Rule
• Update on Cell Phone Numbers and the Express Consent Requirement  under the TCPA

In this issue:

• Final Remittance Transfer Rule
• CFPB Rules on Gift Cards and Unclaimed Property Laws in Maine and Tennessee
• Prohibition on Financing Credit Insurance Premiums
• Mortgage Rules Update

In this issue: 

• Revision to Guidance on Community Reinvestment
• CFPB Enforcement Action Under RESPA
• New York and Massachusetts Use New Tool to Protect Consumers from Payday Loans

The current suspension of the national debt limit expires on May 19. Accordingly, unless the debt limit is raised, the Bureau of Public Debt may be unable to issue SLGS after May 19, 2013.

In this issue:

• Interagency Guidance on Leveraged Lending
• Fair Lending and Indirect Auto Lending
• Elimination of Sticker Disclosure Requirement at Automated Teller Machines 

On January 29, 2013, House Bill 983 was introduced in the General Assembly.

The staff of the Securities and Exchange Commission’s Division of Investment Management recently published guidance to clarify the obligations of certain investment companies to file for review communications posted on social media sites and in other interactive communications where such communications are not required to be filed with the Financial Industry Regulatory Authority.

In this issue:

Federal Subsidies to Issuers of Build America Bonds and Direct Pay Tax Credit Bonds Are Being Reduced by Sequestration

IRS Releases Tax Exempt Bonds FY 2013 Work Plan

IRS Releases Report on Avoiding Troubled Tax-Advantaged Bonds

IRS Releases New Voluntary Closing Agreement Program Request Form

Have You Adopted Post-Issuance Compliance Procedures?

In this issue:

• Student Loan Servicers to Be Supervised by the CFPB
• FTC Updates “Dot Com Disclosures”

One of the last steps in the foreclosure process in Illinois, after a judgment of foreclosure has been obtained and the real property has been sold at auction in a judicial sale, involves obtaining a court order approving and confirming the sale.

In this issue:

• Corporate Governance and BSA/AML Compliance

In 2010 the Dodd-Frank Wall Street Reform and Consumer Protection Act gave the Securities and Exchange Commission the power to adopt rules providing for a “harmonized” standard of conduct for broker-dealers and investment advisers when they provide advice to retail customers.

The Municipal Securities Rulemaking Board  recently proposed a major revision of MSRB Rule G-19 (Suitability of Recommendations and Transactions). The proposal would harmonize Rule G-19 with the general broker-dealer suitability obligation under Financial Industry Regulatory Authority, Inc. Rule 2111 which became effective in July 2012. 

This client alert discusses asset backed commercial paper, developed in the early 1980s as a means for banks to provide their customers with cost-efficient money market financing of trade receivables, lease receivables and similar commercial assets, and the most significant issues now facing the traditional ABCP market.  

In this issue:

• Unearned Discount Points
• New Mortgage Foreclosure Rules in Illinois
• Cybersecurity and Reputational Risk

The staff of the Securities and Exchange Commission recently issued a Risk Alert announcing that it has observed widespread compliance deficiencies related to Rule 206(4)-2 under the Investment Advisers Act of 1940.

As set forth in our Client Alert dated March 4, 2013, President Obama recently issued an order that authorized certain automatic cuts to federal spending. President Obama issued the order under a “sequestration” law previously enacted by Congress.

On March 1, 2013, President Obama issued an order for certain automatic cuts to federal spending. President Obama issued the order under a “sequestration” law previously enacted by Congress.

The ability of state and local governments to incur debt in order to finance structure, or other essential governmental services is well established and fundamental to their basic operation. 

If Congress does not act soon to postpone or avoid automatic cuts to federal spending, the federal government may implement certain automatic spending cuts under a “sequestration” law previously enacted by Congress.