LRA Updates

REGULATORY DEVELOPMENTS Basel III Endgame Comment Submissions The comment period for the proposed capital rules (commonly referred to as Basel III Endgame) concluded on January 16. Hundreds of comment letters were submitted with thousands of pages of views expressed. Comment letters can be reviewed at both the FDIC and Regulations.gov websites. We have reviewed many…

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

REGULATORY DEVELOPMENT SEC’s Final “Clawback” Rule – Potential 409A Issues In October 2022 the SEC adopted final rules stipulating that public companies and certain other companies must adopt clawback policies to recover erroneously awarded incentive-based compensation from its executive officers. Compliant policies are required by December 1, 2023. The Groom Law Group has written a…

REGULATORY DEVELOPMENTS Agencies Extend Comment Period on Proposed Rules to Strengthen Large Bank Capital Requirements On October 20 the banking regulators announced that the comment period for the so-called Basel III Endgame proposed rule will be extended from November 30 to January 16, 2024. We have completed an initial review of the proposed rule’s potential…

REGULATORY DEVELOPMENTS Basel III Endgame Proposal – Update On September 12 various banking and financial services trade associations (including the American Banker Association, SIFMA, and Bank Policy Institute) submitted a letter to the banking regulators requesting that the regulatory capital rule be re-proposed in conjunction with expanded information on the underlying data and assumptions used…

TAX DEVELOPMENTS IRS Sets Hearing Date for Reportable Policy Sale Proposed Rules On August 23 the IRS issued a notice of hearing on its recent proposed changes relating to the transfer for valuable consideration rules associated with 1035 exchanges of life insurance contracts and other life insurance contract transactions. The hearing is set for September…

REGULATORY DEVELOPMENTS Banking Regulators Release Proposed Updates to Basel III Capital Rules On July 27 the banking regulators released proposed rules to implement the final components of the Basel III agreement and to implement certain changes in response to the recent banking turmoil. The proposal primarily applies to banks with $100 billion or more in…

TAX DEVELOPMENTS IRS Reportable Policy Sale Proposed Rule – Update As we covered last month, the IRS has proposed rule changes for the application of the transfer for valuable consideration rules under the reportable policy sale (“RPS”) regulations arising in connection with IRC § 1035 exchanges of life insurance contracts and certain transfers of policies…

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…