Action Line Update

Association Challenges Applicability of U.S. Antitrust Rules to Securities Syndicates: The Association has filed a joint friend of the court brief with the U.S. Supreme Court arguing that underwriters should have implied immunity from suits brought under the antitrust laws because underwriting activities are pervasively covered by the securities laws and many aspects of the fixed-price underwriting system are inconsistent with the scheme of the antitrust laws. The case, Credit Suisse Securities v. Glen Billing, arose when a group of investors who bought stock in IPOs of technology-related companies sued a group of underwriters complaining, among other things, about the same activities that were the subject of the SEC's laddering complaints. The brief points out that the securities laws direct the SEC to consider a wide variety of factors, including not only competitive considerations but also the promotion of efficiency and capital formation. SIFMA was joined in the brief by the Chamber of Commerce of the U.S. and the Business Roundtable. It was represented by Russell Roberts Englert Orseck and Untereiner and by former U.S. Solicitor General and Judge Robert H. Bork.

NASD Members Approve By-law Changes Needed for Merger: NASD has announced that members overwhelmingly approved the by-law changes necessary for the consolidation of NASD with NYSE Regulation. According to NASD, 83% of members voted and 64% approved the amendments. The merger is expected to be effective during the second quarter.

Association Files Amicus Brief on "Collective Scienter": The Association has filed a joint amicus brief with the Second Circuit in a case called Teamsters Local 445 Freight Division Pension Fund v. Dynex Capital Inc. The district court had held that a civil complaint alleging violations of Section 10(b) in connection with sales of asset-backed securities could allege scienter without pleading scienter against any particular employees of the corporation, but only that regional sales offices that purchased the mobile home loans backing the bonds disregarded the loans' creditworthiness. The brief argues that collective scienter is inconsistent with existing precedent and tantamount to liability for negligence on the part of the persons responsible for disclosure.

NASD and NYSE Proposed Rule Changes Regarding Research Analyst Conflicts of Interest Are Published in Federal Register: On January 17, the SEC published for comment in the Federal Register proposed rule changes to amend NYSE Rules 472 and 344, and NASD Rules 1050 and 2711 relating to research analyst conflicts of interest. Both the NASD and NYSE proposals would implement various changes regarding issues such as the disclosure of conflicts, the review of research reports by non-research personnel and restrictions on personal trading by research analysts. All comments must be submitted on or before March 5, 2007. The Federal Register Notice can be found here. For more information on this issue, please contact Mike Udoff at 212.618.0509 or mudoff@sifma.org.

NASD Responds to Industry Comments on Debt Mark-Up Interpretation: On January 12, the NASD responded to comments submitted to the NASD's latest proposed interpretation regarding mark-ups on debt securities. In its letter, NASD addressed comments submitted by the Association, including expanding the QIB exemption and restoring the size proposal. First, regarding the QIB exemption, NASD stated that it was important to see how the market adjusts to the basic exemption before it can further expand the exemption to include all transactions in securitized products that are rated investment grade between dealers and QIBs. On the second issue, NASD stated that the size proposal is an inappropriate basis to demonstrate that contemporaneous cost is not indicative of prevailing market price. In addition, NASD clarified the proposed provision regarding news developments. The full text of the letter is available here. For more information please contact Robbin Conner at 646.637.9228 (Structured Debt Securities), or Mary Kuan at 646.637.9220 (Corporate Debt Securities).

SEC Names James Brigagliano Associate Director of Market Regulation for Trading Practices and Processing: The SEC has named James Brigagliano as the Associate Director for Trading Practices and Processing in the Commission's Division of Market Regulation. Mr. Brigagliano is currently serving as Acting Associate Director, and oversees the Division's regulatory program in trading practices, clearance and settlement, and the enforcement liaison function. Prior to his involvement in the Division of Market Regulation, Mr. Brigagliano was Assistant General Counsel for Litigation and Administrative Practice in the Commission's Office of the General Counsel. The full press release is available here.

NYSE Files Proposed Rule on Power to Grant Regulatory Relief in an Emergency: NYSE has filed with the SEC proposed Rule 477 (Emergency Powers), which would allow it the power to grant exemptive regulatory relief in the event of an emergency, such as a pandemic. Currently, NYSE does not have a medium for granting such relief. The new rule would give it authority to defer or extend the time frames for the filing of documents or reports or the obtaining of NYSE approval. It would allow NYSE to waive or extend the time periods otherwise applicable for requesting margin extensions and for complying with examination, training or continuing education requirements. Finally, it would allow NYSE to require member organizations to limit or reduce business activities in an emergency, regardless of whether the firm is in compliance with the net capital rule. Absent overwhelming necessity, relief would be granted for a maximum of 90 days at a time, subject to extension.

SIFMA Responds to Moody's Proposal Regarding Rating of Preferred Securities and Hybrid Securities: On January 16, 2007, the Association filed a letter with Moody's regarding its recent proposal and amendment to such proposal regarding changes to Moody's guidelines for rating of preferred stock and hybrid securities. While the Association applauds Moody's for its desire to ensure that its rating for preferred stock and hybrid securities reflect the appropriate level of risk association with these securities, the Association notes a number of considerations that should be adequately and fully addressed before adoption of the proposal. Among other things, the letter requests detailed and well-supported rational identifying any risks associated with non-cumulative hybrid and preferred securities and further clarification about how and why those risks, if any, warrant a lower rating notch before implementing changes. The letter also requests an explanation for the proposal's inconsistent treatment of certain securities and justification for establishing a certain rating threshold for issuers for a one notch downgrade. In addition, the letter states that if Moody's does consider implementing the proposal, it should provide the public with a consolidated list of the securities subject to the proposal since market participants, particularly those holding many securities, would benefit from that information. For further information, please contact Mary Kuan at 646.637.9220.

SEC Issues Proposal to Amend Rule 105 of Regulation M Regarding Short Selling In Connection with a Public Offering: The SEC recently published a proposal to amend Rule 105 of Regulation M, which, by its terms, applies to fixed income securities as well as equity securities. The current Rule 105 restricts using the securities received in a registered offering to "cover" short sales during the restricted period. The proposal more generally prohibits any individual from effecting a short sale during the Rule 105 restricted period, and then purchasing, including entering into a contract of sale for, such a security in a registered offering, and does not provide an exception to allow those that close-out restricted period short sales prior to pricing to participate in the registered offering. The proposal, like the current rule, allows persons to effect short sales before the restricted period and still purchase, including entering into a contract of sale for, the security in the offering. Short sales are also permitted during the restricted period provided securities are not purchased during the offering. The Association is currently working on a response to this proposal. Comments for this proposal are due on or before February 12, 2007. For further information, please contact Mary Kuan at 646.637.9220.

New York Stock Exchange Files Proposed Rule Change Regarding Delisting: On December 20, 2006, the SEC published a proposed rule change that would eliminate the NYSE's discretion to permit companies that have not filed their periodic annual report within 12 months of the filing due date to continue to be listed. The proposed rule change can be found here. The NYSE's existing rule grants the NYSE the ability to forebear from commencing suspension and delisting of a company that has failed to file its periodic annual report within 12 months from the filing due date if the NYSE believes that, pursuant to certain factors, including the company's relative financial health and compliance with NYSE listing standards, the company remains suitable for listing. If the proposed rule change is approved, the NYSE's discretion to allow continuation of listing for companies that have failed to file their annual report by 12 months of the filing due date will expire on December 31, 2007. If the NYSE grants a dispensation to a company prior to December 31, 2007, and the company fails to file its periodic annual report by December 31, 2007, suspension and delisting procedures will commence. The deadline for comments is January 18, 2007. For further information, please contact Mary Kuan at 646.637.9220.

FICC Rule Proposals Approved: For full story see Government and Federal Agency Markets Issues section.

FICC Reminds Neeting Members of Foreign Affiliate Trading Reporting Requirement: For full story see Government and Federal Agency Markets Issues section.

Federal Reserve Board Approves Policy on Payments System Risk Changes: For full story see Government and Federal Agency Markets Issues section.

FICC Rule Proposals Approved: On January 19 the Securities and Exchange Commission (SEC) approved two Fixed Income Clearing Corporation's rule proposals. The first approved rule proposal filed by FICC on September 22, 2006, sought to amend FICC's Government Securities Division's ("GSD") rules to permit GSD members to request the return of excess clearing fund collateral held on deposit with FICC on a more frequent basis than was allowed under GSD's rules. The second approved rule, filed October 16, 2006, proposed to adjust the deadline for satisfying a clearing fund deficiency call from 10:30 a.m. to 9:30 a.m. in the Schedule of Timeframes in FICC's GSD rulebook.

FICC Reminds Netting Members of Foreign Affiliate Trading Reporting Requirement: The Fixed Income Clearing Corporation reminded Netting Members of their requirement to report certain GSD netting-eligible activity engaged in by their foreign affiliates to FICC. Specifically, netting members must report to FICC in writing on an annual basis whether, and to what extent, any of their foreign affiliates engaged in GSD netting-eligible activity that exceeded the de minimis amount specified in GSD's Rules. Netting Members are required to submit the requisite information to FICC by January 31, 2007 for trading activity conducted by their foreign affiliates during the entire year of 2006. A form for this purpose has been provided by FICC.

Treasury Announces Certain Marketable Treasury Securities Not Eligible for Legacy Treasury Direct System: The U.S. Treasury Department released a final rule amendment, that provides that certain marketable Treasury securities to be auctioned will not be eligible for purchase or holding in the Legacy Treasury Direct System. Treasury issued this amendment to the auction rules because the Legacy Treasury Direct System will eventually be phased out.

Federal Reserve Board Approves Policy on Payments System Risk Changes: The Federal Reserve Board on January 12 approved changes to its Policy on Payments System Risk. Under the revised policy, payments and settlement systems that are considered "systematically important" and that are subject to the Board's authority are expected to complete and disclose publicly self-assessments against the principles and minimum standards in the policy. The Board expects each systemically important system subject to its authority to complete and publish its initial self-assessment by December 31, 2007. The Board will communicate directly with each system expected to complete a self-assessment. The revisions also incorporate the Recommendations for Central Counterparties developed by the Committee on Payment and Settlement Systems of the central banks of the Group of Ten countries and the Technical Committee of the International Organization of Securities Commissions. These recommendations will serve as the Board's minimum standards for central counterparties identified as systemically important and subject to the Board's authority. The FRB's press release is available here, and the related notice is posted here.

SIFMA Publishes Exposure Draft of Guidelines on Delivery of GSE Offering Materials: The Association published an Exposure Draft of revisions to the Guidelines on Delivery of Offering Materials Relating to GSE Securities on January 16. The revised Guidelines incorporate an "access=delivery" electronic model for GSE offering materials and represents the first changes to the Guidelines since they were originally published in 1993. Comments on the Exposure Draft are due no later than January 31. The Exposure Draft can be accessed here. Questions and comments can be forwarded to Robert Toomey at 646.637.9224.

FDIC Issues Supervisory Policy on Predatory Lending: On January 22, the FDIC issued Supervisory Policy on Predatory Lending, which distinguishes predatory lending from subprime lending to consumers with limited or problem credit histories. In this policy the FDIC states that "questionable loan underwriting and the risk of litigation raise... safety and soundness concerns", while acknowledging that "there is no simple checklist for determining whether a particular loan or loan program is predatory" and also that "[subprime loans] have a legitimate place in the market". The FDIC notes that signs of predatory lending include the lack of a fair exchange of value or loan pricing that reaches beyond the risk that a borrower represents or other customary standards. Predatory loans generally include at least one of the following factors: (1) unaffordable loans based on the assets of the borrower rather than on the borrower's ability to repay; (2) loan flipping; and (3) fraud or deception. The FDIC's policy contains an outline of its response to predatory lending, which includes both examinations and supervisory actions. Please contact Robbin Conner at 646.637.9228 or Chris Killian at 646.637.9226 for more information.

Fannie Mae Adds Prepayment Premium Information to NIPS File: Effective with the New Issue Pool Statistics File (NIPS) for pools closed March 2, 2007, Fannie Mae will disseminate pool-level aggregation of the prepayment premium information connected with each underlying loan in a pool. This additional information will found in a new record type "16". The new data elements will be: Prepayment Premium Option, defined as "the method used by the lender to calculate what, if any, premium the borrower must pay should the borrower prepay the loan. Should there be more than one Prepayment Premium Option assigned to any of the underlying loans, each option will be represented as an entry in multiple records for the particular pool"; Latest Prepayment Premium End Date, defined as "the last day on which a borrower is required by the lender to pay a prepayment premium. If there is more than one loan in a pool with the same Prepayment Premium Option, this day would be the last day for the loan with the latest prepayment premium end date"; and Weighted Average Prepayment Premium Term, defined as "the weighted average of the number of months from issuance of each loan in which a borrower is required to pay a prepayment premium when prepaying a loan. If there is more than one loan in a pool with the same Prepayment Premium Option, this value is a weighted average based on a calculation." Please contact Chris Killian at 646.637.9226 with questions or concerns.

FASB Issues Final FAS 155 Scope Exception: On January 17, FASB issued the final version of Statement 133 Implementation Issue No. B40, a scope exception for certain prepayable securitization instruments from the application of Paragraph 13(b) of FAS 133. This scope exception is a response to industry comments and reflects the following changes from the original proposed statement: FASB removed criterion (b) from the scope exception and also amended criterion (c) in the proposed scope exception. Please click here for the final document, and here for a comparison of the proposed and final documents. Please contact Robbin Conner at 646.637.9228 with any questions.

Governor Bies Speaks About Mortgage Lending: In a speech to the Eller College of Management on January 18th, Federal Reserve Governor Susan Schmidt Bies spoke about the state of the economy, with a special focus on issues in the mortgage market including nontraditional mortgage products. Bies reviewed Federal Reserve publications as well as last year's Interagency Guidance on Nontraditional Mortgage Products. The full text of her speech is available here.

Association Meets with SEC Regarding Mark-Up Policy for Securitized Products: Association staff and members met with representatives from the SEC last week to discuss issues surrounding the NASD's mark-up policy [SR-NASD-2003-141]. The active discussion covered topics such as whether the line for the QIB exemption in the policy between investment grade and non-investment grade makes sense for securitized products; how dealers and their counter-sides use models; and general market dynamics in the securitized products markets. The MBS and Securitized Products Division submitted a comment letter which discussed these and other issues to the SEC on January 3; it is available here. For more information please contact Robbin Conner at 646.637.9228.

Freddie Mac to Begin Posting Reference REMIC Tradable Supply Report : On January 10, Freddie Mac announced that it will begin to post to its website, on a monthly basis, a report detailing the 'net tradable supply' of its Reference REMIC securities. The report is available here. Please contact Robbin Conner at 646.637.9228 or Chris Killian at 646.637.9220 for more information.

Fed Governor Bies Speaks on Mortgage Lending: On January 11, Federal Reserve Governor Susan Schmidt Bies spoke to the National Credit Union Administration about enterprise risk management and mortgage lending. Bies' speech focused on nontraditional and subprime lending. She stated that "supervisors are discussing what can be done to ensure that [subprime] loans are being originated in a safe and sound manner and that consumers are being provided with clear and balanced information so that they can fully understand the terms and risks of these products. Subprime loan underwriting, when done prudently, should reflect all relevant credit factors, including the borrower's ability to service the debt." The complete text of Bies' speech may be found here. The discussion of mortgage lending begins about halfway down the page.

Association Files Amicus Brief on "Collective Scienter": For full story see Cross Market Issues section.

Federal Reserve Board Approves Policy on Payments System Risk Changes: For full story see Government and Federal Agency Markets Issues section.

Associations Issue Joint Response to CESR Consultation Paper on Transaction Reporting: SIFMA and the associations listed in the comment letter jointly responded to a consultation paper by the Committee of European Securities Regulators (CESR) on the use by European regulators of reference standard codes in transaction reporting under the Market in Financial Instruments Directive (MiFID).

EU Commission Consults on Findings of Expert Group Reports on Integration of EU Mortgage Markets: Further to the issues highlighted by contributions received to the EU Commission's 2005 Green Paper on mortgage credit in the EU, the Commission has published the reports of two expert groups, established in April 2006 in order to explore the issues of mortgage funding and consumer protection, for public consultation. The report of the Mortgage Funding Expert Group reviews barriers to the emergence of an efficient and competitive pan-European mortgage funding market and proposes solutions to removing those that already exist. The report by the Mortgage Industry and Consumer Dialogue explores consumer protection issues revolving around: (i) pre-contractual information; (ii) advice; (iii) early repayment; and (iv) the annual percentage rate of charge. The reports will assist the Commission in finalising its White Paper which is due in June 2007. Comments are invited by 15 February 2007.

EU Commission Consults on Auditors' Liability: Following the October 2006 EU Commission study on the economic impact of the current regimes in member states regarding the statutory liability faced by audit firms, the Commission has launched a public consultation on possible options for reforming auditors' liability regimes in the EU. The options are to introduce: (i) a fixed monetary cap at European level; (ii) a cap based on the size of the audited company as measured by its market capitalisation; (iii) a cap based on a multiple of the audit fees charged by the auditor to its client; and (iv) the principle of proportionate liability, which means that each party (auditor and audited company) is liable only for the portion of loss that corresponds to its degree of responsibility. The scope of the consultation is limited to the liability that auditors face due to their possible acts of negligence associated with a corporate fraud or failure. Comments are invited by 15 March 2007.

FSA Publishes Text of New Disclosure and Transparency Rules: The Financial Services Authority (FSA) has published the text of the new Disclosure and Transparency Rules (DTR) and related amendments to the Listing Rules in the Transparency Obligations Directive (Disclosure and Transparency Rules) Instrument 2006, which was made on 21 December 2006. The new Rules, which came into effect on 20 January 2007, implement aspects of the Transparency Directive in the UK.

FSA Announces Members of Industry Groups for Retail Distribution Review: The Financial Services Authority (FSA) has announced the members of a number of industry groups who will form the working groups of its Retail Distribution Review (RDR), which was launched in June 2006 in order to identify market solutions to core problems within the retail investment market. Clive Briault, Managing Director of the FSA Retail Markets sector, believes that the RDR will act as a catalyst to improve the efficiency of the distribution of retail investment products and also that the appointment of industry leaders is an important step forward in achieving this.

ECB Publishes Working Paper on Pricing of Settlement Link Services and Mergers of Central Securities Depositories: The European Central Bank (ECB) has published a working paper, entitled "Pricing of Settlement Link Services and Mergers of Central Securities Depositories", which discusses the substantial settlement fees charged for the settlement of securities transactions through central securities depository (CSD) links where the buyer and seller are members of two different CSDs (typically located in different countries). The paper: (i) provides an explanation as to why the settlement of cross-border securities transactions proves so costly for investors; and (ii) analyses the effects that a cross-border merger of linked CSDs would have on the settlement fees that the trading parties are charged.

EU Commission Publishes Report on Governance Developments in IASB and IASCF: The EU Commission has published a report on governance developments in the International Accounting Standards Board (IASB) and International Accounting Standards Committee Foundation (IASCF). The report highlights that further improvement is desirable in relation to: (i) the governance structure of the IASB/IASCF in order to improve the accountability of the Board and of the trustees to their constituents; (ii) the IASB's due process with stakeholders to ensure that it explains the reasons for not taking into account their comments; and (iii) the issue of adequate representation of stakeholders within the governing bodies of the IASB/IASCF.

IOSCO Publishes Report on Capital Adequacy Requirements for Financial Intermediaries: The Emerging Markets Committee of the International Organization of Securities Commissions (IOSCO) has published a report, providing guidance to emerging market regulators regarding capital adequacy requirements for financial intermediaries. The report contains: (i) a survey of capital adequacy requirements in 24 emerging market jurisdictions; and (ii) a corresponding analysis with related recommendations designed to assist those members wanting to review and strengthen their existing capital adequacy regulatory framework.

MiFID Connect Publishes Draft Guidelines on UK Implementation of MiFID: MiFID Connect, a joint project of eleven industry associations including SIFMA, has published a set of draft guidelines relating to the expected Financial Services Authority (FSA) rules implementing the Markets in Financial Instruments Directive (MiFID) in the UK. The guidelines have been produced in accordance with MiFID Connect's five-stage programme of work, undertaken by the associations concerned and Clifford Chance, for establishing an industry approach towards MiFID implementation. The guidelines cover the application of MiFID requirements in relation to: (i) investment research; (ii) suitability and appropriateness; (iii) best execution; (iv) outsourcing, and (v) conflicts of interest.

CEBS, CEIOPS and CESR Publish Work Programme for 2007: The Committee of European Banking Supervisors (CEBS), the Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS) and the Committee of European Securities Regulators (CESR) have published a work programme for 2007, developed in accordance with their November 2005 Joint Protocol, which aims to make supervisory cooperation transparent across financial sectors and enhance consistency so that work done in one sector is coherent with the work developed in other financial sectors. During 2007, the three committees will perform joint work on: (i) financial conglomerates; and (ii) the implementation of the recommendations set out in the Financial Services Committee's February 2006 Report on Financial Supervision (endorsed by the Council of European Finance Ministers (ECOFIN) in May 2006).

EU Commission Welcomes CESR Report on Credit Rating Agencies: The EU Commission has welcomed the January 2007 Committee of European Securities Regulators (CESR) report concerning the compliance of credit rating agencies (CRAs) with the IOSCO Code of Conduct Fundamentals. In the light of the report's main conclusions, the Commission believes that no new legislative initiatives are needed as the Market Abuse Directive (MAD), the Capital Requirements Directive (CRD) and the Markets in Financial Instruments Directive (MiFID) adequately cover the most important aspects related to the activity of CRAs. However, the Commission does state that CRAs will need to continue their efforts to comply with the provisions of the code and will be pushing for improvements in areas where shortcomings have been identified.

CESR Level 3 Open Hearing on MiFID Passport and Inducement Provisions: The Committee of European Securities Regulators (CESR) will hold a level 3 open hearing on 2 February 2007 in relation to implementation of the Passport and Inducement provisions of the Markets in Financial Instruments Directive (MiFID). The hearing will take place at CESR's premises in Paris.

EU Commission Issues Second Call for Advice from CEBS on Large Exposures: The EU Commission has issued a second Call for Technical Advice, requesting advice from the Committee of European Banking Supervisors (CEBS) in relation to the current EU large exposure rules under the recast Banking Consolidation Directive (2006/48/EC) and the recast Capital Adequacy Directive (2006/49/EC). The call has been issued as part of a review which the Commission is obliged, under Article 119 of 2006/48/EC and Article 28(3) of 2006/49/EC, to conduct by 31 December 2007 in recognition of the limited changes which will be made in this area. The Commission asks CEBS to consider: (i) whether/to what extent, the issues identified throughout the call for advice can be addressed or improved through enhanced supervisory cooperation and convergence without recourse to legislative measures; and (ii) whether legislative and supervisory regimes in other jurisdictions contain features that should be considered in the EU.

Review of Financial Regulation in EU Published: The Open Europe website has published the results of a study, carried out by Keith Boyfield, Hugo Robinson and Lorraine Mullally, on the Financial Services Action Plan (FSAP) which aims to ensure the creation of a single EU market in financial services. The report sets out a list of proposals to improve the FSAP and the regulatory process for financial services. Amongst other things, the proposals include the simplification and clarification of the Transparency Directive and the Prospectus Directive, which, the report suggests, in their current form, impose unjustifiable costs on security issuers.

The Banca d'Italia (Bank of Italy) Issues Circulate No. 263The Banca d'Italia (Bank of Italy) has issued circular no 263, dated 27 December 2006, containing the "New regulations on Prudential Supervision on Banks" which set out a new framework for the capital adequacy supervision of banks and banking groups, implementing the recast Banking Consolidation Directive (2006/48/EC) and the recast Capital Adequacy Directive (2006/49/EC).

CEBS and CEIOPS Publishes Cross-Sectoral Comparison of Capital Instruments for Regulatory Capital Purposes: The Committee of European Banking Supervisors (CEBS) and the Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS) have published a report on the results of a cross-sectoral comparison, carried out by the Interim Working Committee on Financial Conglomerates (IWCFC), of the capital instruments that are currently eligible within European banking, securities and insurance regulation for prudential purposes. The comparison analyses the main similarities and differences between the characteristics of regulatory capital for a credit institution, an investment firm and an insurance entity. In the coming months, the IWCFC will analyse the impact that differences in the sectoral rules may have for the supervision of financial conglomerates.

EU Commission Consults on Regulation of Non-EU Audit Firms: The EU Commission has launched a consultation paper seeking views on its future strategy and priorities in relation to the regulation of non-EU audit firms. The consultation will assist the Commission in finding pragmatic and consistent solutions within the framework of the 8th Company Law Directive on statutory audit of annual accounts and consolidated accounts, which applies to both EU and non-EU audit firms. Comments are invited by 5 March 2007.

CEIOPS Publishes Statement on Role of Lead Supervisor for Insurance Groups: The Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS) has published its "Statement on the role of the lead supervisor for insurance groups supervision" which clarifies the role of lead supervisor in the supplemental supervision of cross-border insurance groups. The statement sets out the tasks of the lead supervisor as defined in the Insurance Groups Directive and the Helsinki Protocol of May 2000 and as set out in "CEIOPS' Guidelines for Co-ordination Committees", as well as describing a "Lead Supervisor Protocol Framework".