The regulatory environment continues to be a contexture of legislative acts and evolving action related to market practices.

What are the regulatory issues that are keeping you up at night? Whatever they might be, there's a good chance that we have the insights to help you understand them and the people to help you adjust and even thrive. Let us know what's on your mind. We'll let you know how we can help.


Regulation Map Regulators Taxation Insurance Derivatives Fund Operations Financial_Stability Money Market Reform Global Investing Investor Protection Retirement Plans



  • Evolving Regulations and Collateral Demands

    BNY Mellon's Jim Malgieri, Head of Service Delivery and Regions, Global Collateral Services and James Slater, Head of Securities Finance, Global Collateral Services, discuss how institutions are navigating new regulations, market dynamics, demand for high-quality collateral and a heightened focus on risk.

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  • Mandatory Swaps Trading via SEFs Underway

    The required execution of interest rate swaps through CFTC-certified Swaps Execution Facilities (SEFs) or Designated Contract Markets (DCMs) commenced on February 15, 2014. The establishment of SEFs and DCMs as regulated platforms for swaps trading is based upon Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 ("Dodd-Frank Act").

    Visit CFTC.FOV

  • European Union endorses derivatives clearing obligation and risk mitigation rules between non-EU counterparties

    On 13 February 2014, the European Commission (EC) adopted the regulatory technical standards (RTS) without amendment, as proposed by the European Securities and Markets Authority (ESMA) for derivative transactions by non-European Union (EU) counterparties. The RTS cover derivatives transactions concluded without business substance or economic justification that can be used to circumvent EMIR's requirement for clearing and risk mitigation.


  • Clarification on Reporting of Exchange Traded Derivatives

    On 20 December 2013, the European Securities and Markets Authority (ESMA) published revised Questions and Answers (Q&As) on the implementation of the European Markets Infrastructure Regulation (EMIR) including how exchange traded derivatives (ETD) should be reported. From 12 February 2014, all European Union (EU) counterparties to a derivatives contract will have to report their trades to a trade repository, irrespective of whether these are traded on or off exchange.


  • Derivatives Clearing and Risk Mitigation Obligations for Non-EU Counterparties onto Derivatives

    On 18 November 2013, the European Securities and Markets Authority (ESMA) published a final draft of regulatory technical standards (RTS) for derivative transactions by non-European Union (EU) counterparties. The RTS implements provisions relating to OTC derivatives, central counterparties and trade repositories under the European Market Infrastructure Regulation (EMIR).


  • BASEL Committee & IOSCO Final Report for Non-Centrally Cleared Derivatives Margin Requirements; Foreign Exchange Exemptions

    On September 2, 2013, the Basel Committee for Banking Supervision and the International Organization of Securities Commissions (IOSCO) issued their final framework for margin requirements in the settlement of non-centrally cleared derivatives.

    Visit BIS.ORG

  • The Dodd-Frank CAT 3 September 9, 2013 Mandatory Clearing Deadline is Quickly Approaching

    Title VII of the Dodd Frank Act (DFA), requires mandatory clearing for over-the-counter (OTC) Derivatives for Interest Rate Swaps (IRS) and Credit Default Swap (CDS). The U.S. Commodities and Futures Trading Commission (CFTC) Category 3 legislation, will require clearing for entities where one counterparty is an Employee Retirement Income Security Act (ERISA) pensions/ plans, third party sub-accounts (accounts managed by Investment managers) or any other entity that trades/ clears IRS and CDS effective September 9th.

    Visit SEC.GOV

  • Path Forward Statement of Understanding on Cross-Border Regulation of OTC Derivatives

    On 11 July 2013, the European Commission (EC) and the Commodity Futures Trading Commission (CFTC) announced that they have reached a mutual understanding ("Path Forward") on the approach to address market participants' concerns on cross-border regulation of over-the-counter derivatives.

    Visit EUROPA.EU

  • SEC Proposes Rules for Cross-Border Security-Based Swaps

    On May 1, 2013 the Securities and Exchange Commission (SEC) unanimously voted to issue a proposal that includes rules and interpretive guidance for cross-border security-based swaps regulation. The proposed rule is pursuant to the requirements set forth for over-the-counter derivatives regulation in Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank).

    Visit SEC.GOV


Fund Operations

  • BNY Mellon and AIFMD Research

    In December 2013, BNY Mellon conducted the second in a series of surveys amongst alternative fund managers to take stock of the industry's preparedness to implement the AIFMD. Our research report looks at how the industry is addressing the AIFMD's data and monitoring requirements, challenges, cost of compliance, how risk management solutions are developing, and how far down the line the industry is in preparing for authorization

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  • Q&A on the Application of AIFMD

    On 17 February 2014, the European Securities and Markets Authority (ESMA) released a set of questions and answers (Q&A) on the application of the Alternative Investment Fund Managers Directive (AIFMD). The Q&A document aimed at competent authorities, seeks to promote a common supervisory approach and practice in the application and implementation of AIFMD.


  • Proposed Collateral Diversification for ETFs and UCITS

    On 20 December 2013, the European Securities and Markets Authority (ESMA) issued a consultation paper with the aim of seeking views on the merits of revising the provisions on diversification of collateral in its guidelines on exchange traded funds (ETFs) and other Undertaking for Collective Investment in Transferable Securities (UCITS) issues. ESMA will take into account responses when finalizing the guidelines on the diversification of collateral received by UCITS in the context of efficient portfolio management techniques and OTC transactions to be adopted in Q1 2014.


  • Improving Financial Statements Disclosure for Financial Institutions onto Fund Operations

    On 18 November 2013, the European Securities and Markets Authority (ESMA) published a Review of the comparability and quality of disclosures in 2012 International Financial Reporting Standards (IFRS) financial statements of listed financial institutions. ESMA identified broad variations in the quality of the information provided and found cases where it was insufficient or insufficiently structured to allow comparability among financial institutions.


  • Guidelines and Opinions on AIFMD Reporting Obligations 

    On 1 October 2013, the European Securities and Markets Authority (ESMA) published final guidelines and opinions in relation to the reporting obligations for alternative investment fund managers (AIFMs). In its Opinion, ESMA proposes additional standardised periodic reporting on an alternative investment fund's (AIF) risk profile over and above that provided for in the regulation.


  • UCITS Fund Manager Remuneration Proposal

    On 3 July 2013, the European Parliament (EP) rejected some of the remuneration proposals put forward by the Economic and Monetary Affairs Committee (ECON). The European Union proposals under UCITSV were intended to ensure sound risk management and that decisions made by senior management or those who had a material impact on the fund were consistent with the UCITS's risk profile.


  • ESMA Negotiates Additional Non-EU Cooperation Agreements for Alternative Investment Funds (AIFs)

    On July 18, 2013, the European Securities and Markets Authority (ESMA) Board of Supervisors announced the finalization of additional cooperation arrangements, also known as Memoranda of Understanding (MoUs), between EU securities regulators and Non-EU authorities for securities markets supervision.


  • Proposed Regulation on European Long-Term Investment Funds

    On 26 June 2013, the European Commission (the "Commission") published a proposal for the regulation on European long-term investment funds. The proposed European Long-Term Investment Fund ("ELTIF") is designed for investors looking for long-term investment opportunities in companies or infrastructure projects.

    Visit EC.EUROPA.EU

  • ESMA Permits Supervision and Co-operation of Non-EU AIFMs

    On 22 May 2013, the European Securities and Markets Authority (ESMA) approved co-operation arrangements between European Union (EU) securities regulators that are responsible for the supervision of alternative investment funds (AIFs) (including hedge funds, private equity and real estate funds), and 34 regulators in other countries. The rules of the Alternative Investment Fund Managers Directive (AIFMD) apply to non-EU alternative investment fund managers (AIFMs) that manage or market AIFs in the EU, and to EU AIFMs that manage or market AIFs in third countries.


  • ESMA Releases a Draft RTS to Determine the types of Alternative Investment Fund Managers

    The European Securities and Markets Authority (ESMA) released its draft regulatory technical standards (RTS) to determine types of alternative investment fund managers (AIFMs), where relevant in the application of the AIFM Directive.


  • AIFMD Changes Europe's Euro 2 Trillion Alternative Investment Fund Industry

    The AIFM Directive introduces harmonized rules for managers of alternative investment funds that are sold to EU investors. The Madoff fraud, the Lehman experience (impacting hedge funds) and the political desire to create more transparency around hedge funds and private equity funds were immediate catalysts for this new directive. This paper outlines the Directive, examines the impact on the fund value chain and the deepening manager — service provider relationship, reviews the increased depositary duties and liabilities as well as the new hedge fund - prime broker depositary models.

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  • MiFID II - Expanding Regulatory Reform in Europe

    The Markets in Financial Instruments Directive became a core pillar in the European Union financial markets regulatory system when it was implemented on 1 November 2007. The Directive's main objectives were to increase competition, improve investor protection and, combined with other Directives, help create a single market for financial services and activities in the EU. The key measures implemented through the directive were: best execution and order-handling practices, categorization of clients, investment research, conflicts of interest, outsourcing, transaction reporting, pre- and post-trade transparency and regulation of trade-related market infrastructure. The objective of this paper is to provide BNY Mellon's perspective on the impacts of changes to The Markets in Financial Instruments Directive as proposed in a package of amendments and a regulation currently under consideration by the European Parliament and the European Council.

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Financial Stability


Global Investing

  • IOSCO Consults on Liquidity Risk Management
    for CIS

    The International Organization of Securities Commissions (IOSCO) has issued a set of guiding standards entitled "Principles of Liquidity Risk Management for Collective Investment Schemes". The consultation report (Consultation) outlines 15 practical principles by which the industry and regulators can assess the quality of their practices for Collective Investment Schemes (CIS) liquidity risk management. The principles will apply to the entity responsible for operating CISs.

    Visit IOSCO.ORG

  • IOSCO Principles on Regulating Exchange Traded Funds

    On 24 June 2013, the International Organization for the Securities Commissions (IOSCO) released a final report (the Report) on the Principles for the Regulation of Exchange Traded Funds (ETFs). The principles address ETFs that are organized as Collective Investment Schemes (CIS) and do not apply to other, non-CIS, exchange-traded products (ETPs).

    Visit IOSCO.ORG




Investor Protection


Money Market Reform



  • The RIC Modernization Act: Status, Implications and Impact

    Elisabeth Martinetz, tax director for BNY Mellon Asset Servicing's U.S. Funds Services group, discusses the status of the Regulated Investment Company (RIC) Modernization Act and its impact on the mutual fund industry. This article was first published in The 2013 Mutual Fund Service Guide, June 2013.

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  • U.S. Treasury Amends TIC B Filing Requirements

    In November 2013, the U.S. Department of the Treasury ("the Treasury") revised the filing requirements for Treasury International Capital Form B ("TIC B"), used to report information on cross-border claims and liabilities.


  • A Turning Point for Financial Institutions: A Tax on Transactions

    The year 2008 was arguably a turning point for the financial services sector. In Europe, a common political reaction to the financial crisis was that the financial sector should be held accountable and made to contribute financially to the costs of fixing the economic problems it was said to have helped cause. European Union (EU) legislators were tasked to create an environment in which the financial sector would contribute more fairly to the costs of the crisis and thus address the perceived fiscal imbalance in Europe.

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  • FATCA Registration Portal Opens August 19, 2013; Withholding on Payments Delayed to June 30, 2014

    On July 12, 2013, the Internal Revenue Service (IRS) issued IRS Notice 2013-43, Revised Timeline and Other Guidance Regarding the Implementation of the Foreign Account Tax Compliance Act (FATCA). At this time the IRS announced that the FATCA registration portal will open on August 19, 2013, along with a six-month delay — to June 30, 2014 — for the commencement of FATCA withholding payments.

    Visit IRS.GOV

  • IRS and Treasury Finalize FATCA

    On January 17, 2013 the U.S Department of Treasury (Treasury) and Internal Revenue Service (IRS) released the final regulations for the Foreign Account Tax Compliance Act (FATCA). With the publication of the final regulations those impacted by FATCA can now move closer to implementing their own FATCA compliance regimes.


  • IRS Delays FATCA Guidance Rules

    Despite a recent publication by a Treasury Official, the Inland Revenue Services (IRS) did not issue its proposed rules on Foreign Account Tax Compliance (FATCA) at the end of January as originally planned. According to sources at the Treasury Department, the government is drafting proposals for a regulation. FATCA guidance is intended to implement a statute that requires foreign banks to report their U.S.-owned accounts to the IRS or face, in some cases a 30 percent withholding tax.

    Visit IRS.GOV



  • The Impending Profitability Challenge for
    European Fund Managers

    Fund managers need to act now to ensure their future business is not undermined due to downward pressure on revenues from a number of areas.

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  • SEC and CFTC Approve Final Joint Rules for Private Fund Risk Reporting

    The U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have approved final rules Requiring Registered Investment Advisers to Private Funds and Certain Commodity Pool Operators (CPOs) and Commodity Trading Advisors (CTAs) and have jointly established the form and content to be included in Form PF filings.

    Visit SEC.GOV or CFTC.GOV

  • European Commission DG Internal Market Proposal for a Regulation on the Quality of Audits of Public-Interest Entities and Proposal for a Directive to Enhance the Single Market for Statutory Audits

    The proposals adopted by the European Commission seek to clarify the role of the auditors and introducing more stringent rules for the audit sector aimed in particular at strengthening the independence of auditors as well as greater diversity into the current highly concentrated audit market.


  • SEC Announces Six-Month Extension for Municipal Advisor Registration

    On January 13, 2014, the Securities and Exchange Commission (SEC) issued a Temporary Stay on its Final Rules for municipal advisor registration. The aforesaid stay provides municipal advisors with additional time — until July 1, 2014 — to comply with the SEC registration requirements set forth by Section 975 of the Dodd Frank Wall Street Reform and Consumer Protection Act of 2010 ("Dodd-Frank Act").

  • FED Adopts Regulation NN Enabling Retail Forex Transactions

    On April 4, 2013, the Federal Reserve Board of Governors (The Federal Reserve) adopted "Regulation NN" which enables U.S. financial institutions to enter into foreign exchange transactions with retail customers.

  • SEC and CFTC Finalize Identity Theft Red Flag Program

    On April 10, 2013 the Securities and Exchange Commission (SEC) and the Commodities Futures Trading Commission (CFTC) issued a joint final rule requiring entities under their jurisdiction and managing covered accounts to adopt and administer identity theft red flag programs. This final rule includes, but it not limited to investment advisers, broker dealers, mutual funds, futures commission merchants and swap dealers. The SEC and CFTC finalized this rule in accordance with the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act).


Retirement Plans

  • UK Strategy for Regulating Defined Contribution Schemes onto Retirement Plans

    The Principles for Investment Governance of Defined Contribution ("DC") work-based pension schemes are intended to encourage better investment governance and decision making by all stakeholders (trustees, employers, advisers, pensions providers and members). The DC Principles provide a framework and a practical checklist to benchmark a scheme's investment governance processes against 'best practice' agreed by stakeholder representatives within the Investment Governance Group (IGG). They reflect the growing importance of DC provision and show that good governance is essential to ensure a pension scheme runs well.

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  • IRS Pre-Approval Program for §403(b) Plans

    Starting June 28, 2013, the IRS will begin to accept requests for opinion letters and advisory letters in which they will determine whether the form of a §403(b) prototype plan or §403(b) volume submitter plan meets the requirements of §403(b).

    Visit IRS.GOV

  • SEC Recommendations for Investor Education Regarding Target Date Funds

    On April 11, 2013, the Securities and Exchange Commission (SEC) Investor Advisory Committee, Subcommittee on Target Date Funds, held a meeting to discuss recommendations for target date funds marketing and advertising practices that will promote investor understanding of target date fund operations and risks.

    Visit SEC.GOV

  • Department of Labor: Clearing Brokers Not Fiduciaries Under ERISA

    On February 7, 2013 the Department of Labor (DOL) issued an Advisory Opinion to clarify whether a swaps Clearing Member (CM) or Central Counterparty (CCP) in a swaps transaction involving an employee benefit plan meet the definition of a "fiduciary" subject to requirements set forth Employee Retirement Income Security Act (ERISA) of 1974.

    Visit DOL.GOV

  • Department of Labor Publishes Target Date Fund Tips for ERISA Fiduciaries

    In February 2013, the U.S. Department of Labor (DOL) Employee Benefits Security Administration issued general guidance to assist plan fiduciaries in selecting and monitoring target date funds (TDFs) and other investment options in 401(k) and similar participant-directed individual account plans.

    Visit DOL.GOV

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