Posts by Maria Dadonova

TAX DEVELOPMENTS Reportable Policy Sale Proposed Update On May 10 the IRS published a proposed rule in the Federal Register to amend the existing regulations relating to section 1035 exchanges of life insurance and certain other life insurance contract transactions. These regulations are sometimes referred to as the Reportable Policy Sale rules. The Tax Cuts…

REGULATORY DEVELOPMENTS FSOC Proposes Updated Analytic Framework and Guidance on Nonbank Determinations On April 21 the Financial Stability Oversight Council (FSOC) released a proposed analytic framework for how it assesses financial stability risks and proposed interpretive guidance for how it determines if nonbank financial companies merit enhanced prudential oversight. Treasury Secretary Yellen’s prepared remarks were…

REGULATORY DEVELOPMENTS Potential Bank Regulatory Response to Signature and Silicon Valley Bank Failures On March 28 and 29 Michael Barr, Federal Reserve Vice Chair for Supervision, testified in House and Senate committee hearings on the failure of Silicon Valley Bank (Written Testimony). Silicon Valley Bank was a state member bank with the Federal Reserve as…

REGULATORY DEVELOPMENTS NAIC Releases Draft Model Law for Insurance On February 1 the NAIC Privacy Protections Working Group released a draft of a new model law (Model Law #674). This Draft Model Law seeks to establish standards for the collection, processing, retaining, and sharing of consumers’ personal information by licensees. It also sets forth standards…

We did not identify any subjects warranting coverage in our monthly LRA Update.

LEGISLATIVE DEVELOPMENTS Consolidated Appropriations Act Enacted On December 29 President Biden signed H.R. 2617, the “Consolidated Appropriations Act, 2023” into law. This omnibus legislation included consolidated appropriations for the fiscal year ending September 30, 2023, additional support for the situation in Ukraine, and various other provisions. The legislation also included a package of reforms referred…

INSURANACE DEVELOPMENTS ACLI Update on Life Insurance and Annuity Benefits in 2021 On November 28 the American Council of Life Insurers (ACLI) released its 2022 Life Insurers Fact Book. Highlights include

REGULATORY DEVELOPMENTS FRB and FDIC Proposed Rule for Large Bank Resolution Requirements On October 14 the FRB and FDIC released a jointly developed advance notice of proposed rulemaking (ANPR) to enhance regulators’ ability to resolve large banks. In particular, the ANPR solicits public input regarding whether an extra layer of loss-absorbing capacity could improve optionality…

REGULATORY DEVELOPMENTS Banking Regulators Reaffirm Commitment to Basel III Standards On September 9 the US banking regulators issued press releases reaffirming their intent to implement enhanced regulatory capital requirements that align with the final set of “Basel III” standards issued by the Basel Committee on Banking Supervision in December 2017 (OCC, FRB, and FDIC). The…