FIRMA^®

US Labor Department issues final rule to improve transparency of fees and expenses to workers with 401(k)–type retirement plans
Friday, Oct 15, 2010

The U.S. Department of Labor’s Employee Benefits Security Administration today announced a final rule to give the estimated 72 million participants covered by 401(k)-type retirement plans greater information regarding the fees and expenses associated with their plans in order to better manage their retirement savings.

Regulation • Fact Sheet • Model Chart • News Release

Final regulations on broker reporting of sales of securities and on the basis of securities posted
Tuesday, Oct 12, 2010

Final cost basis regulations, an IRS announcement and a notice were  released October 12.

OCC Bulletin 2010-37 Issued
Monday, Sep 20, 2010

The OCC Bulletin 2010-37 was issued to provide guidance to national banks that deposit fiduciary funds with the bank or an affiliate ("self-deposits"). Events in the financial markets over the past two years, including safety concerns about money market mutual funds, their low yields, and bank liquidity constraints led to an increased number of banks self-depositing fiduciary funds. Self-depositing fiduciary funds can potentially benefit the bank by providing the bank increased liquidity, stable funding, and low-cost deposits. The primary supervisory concern with these self-deposits is that the bank may fail to fulfill its duties of undivided loyalty and care to fiduciary account beneficiaries where the bank’s interests conflict with those of its fiduciary clients. Included in this guidance is an affirmation of longstanding OCC policy that uncleared checks issued on behalf of fiduciary accounts remain subject to the collateral requirements of 12 CFR 9.10 until paid. In addition, because fiduciary funds are often deposited in omnibus accounts, this bulletin highlights FDIC account titling and recordkeeping requirements for such accounts to qualify for pass-through FDIC insurance coverage.

http://www.occ.treas.gov/ftp/bulletin/2010-37.html

Update of SEC Custody Rule FAQs
Friday, Sep 10, 2010

On September 9, 2010  the SEC updated the Custody Rule FAQs by adding four new items (II 5.A, II 5.B, IV.4 and XIII.3).  You can access all the staff  responses to the Adviser Custody Rule at the following url:

http://www.sec.gov/divisions/investment/custody_faq_030510.htm

ABA Teleconference - Wednesday, August 11, 2010; 2:00pm(ET)
Wednesday, Aug 4, 2010

The Impact of Regulatory Reform on Wealth Management and Institutional Trust

• How will the Wealth Management & Institutional Trust business change?
• What fiduciary investment activities could be limited by the “Volcker Rule”?
• How could the Act’s derivatives provisions impact fiduciary clients’ ability to hedge investment risks?
• What impact will the new Bureau of Consumer Financial Protection (BCFP) have on the trust and custody business?
• Would assets under management be taken into account in determining whether an entity is systemically important?
• Scope of the exclusions from the definition of “bank” in the Bank Holding Company Act
• Exemption for single family offices from the Investment Advisors Act
• Issues relating to the custody of assets, possible securities lending limitations, and possible new fiduciary standards for Broker Dealers will also be covered.

To register, go to: http://www.aba.com/teleweb/tbRegReform_6.htm

Dodd-Frank Wall Street Reform and Consumer Protection Act Summary
Thursday, Jul 22, 2010

On Wednesday, July 21, 2010, President Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act. This Act is considered by many to be the most sweeping piece of financial reform legislation since the creation of the FDIC and SEC in 1934. While the many existing regulatory agencies now begin the process of drafting regulations, the financial services industry begins a whole new era. The financial services law firm of Cadwalader, Wickersham & Taft LLP has prepared a summary of this new legislation. We invite you view this enlightened summary by accessing the link below:

http://www.cadwalader.com/assets/client_friend/TheDoddFrankAct_Impacts.pdf

Fourth round of Custody Rule FAQs posted
Thursday, May 20, 2010

On 20 May 2010, the US Securities and Exchange Commission (SEC) posted it's fourth round of updates to staff responses to questions about the custody rule.

http://www.sec.gov/divisions/investment/custody_faq_030510.htm

Reg R - Q&A
Wednesday, Dec 23, 2009

FIRMA is pleased to re-publish the interaction of questions and answers from the recent ABA / FIRMA Teleconference on December 14, 2009, entitled "Reg R Explained - Where Every Fiduciary Organization Must Be Now."

To view this important discussion of Reg R issues, please access the link below:

ABA-FIRMA Reg R Final Questions 12-23-09.pdf