Although the SEC’s rulemaking deferral regarding the uniform fiduciary standard has gained much press, the SEC’s other rulemaking initiatives pursuant to the Dodd-Frank Act march on, and will have a significant effect on broker dealers and investment advisors in the upcoming year.
In particular, the SEC has scheduled a joint SEC-CFTC report to Congress on stable value contracts, and the adoption of rules pertaining to trade reporting, data elements and real time public reporting for security-based swaps. Further, the SEC and CFTC will define key terms for swap products and intermediaries as well as security-based swap clearing agencies. The SEC will also look to register and regulate security swap based data repositories and for mandatory clearing of security-based swaps. Additionally, the SEC will look at the end user exceptions for the mandatory clearing of security-based swaps.
The SEC will also consider a permanent rule to register municipal advisors this year. However, certain controversial rules relating to conflict materials rule finalization and resource extraction disclosures as well as corporate governance rules relating to executive compensation claw backs, performance disclosure pay, compensation ratio and hedging policies have been pushed forward to the first part of this year. Moreover, the SEC still has not set up certain offices that the Dodd-Frank Act required including, but not limited to, the credit ratings and municipal securities oversight function offices. Currently, the SEC believes these functions are being performed by its Division of Trading and Market’s Staff.
In sum, the SEC’s Dodd-Frank Act rule making is still ongoing and will continue as it moves forward.