Week InReview: The New Year Edition

FINRA Provides Options Exchanges with Regulatory Services | (Jan. 1) The Financial Industry Regulatory Authority began its new role to provide the Chicago Board Options Exchange and C2 Options Exchange with surveillance, examinations, investigations and other regulatory services. Read more.

Groups Support Distributions Proposal On Roth IRAs, Offer Tips | (Dec. 30) Business groups commenting on proposed rules about direct rollovers from individual retirement accounts that consists of both after-tax and pre-tax distributions were generally supportive, but complained that proposed rules on hybrid retirement plans are too restrictive in anti-cutback transition relief and in modifying interest crediting rates, and urged the IRS to provide examples addressing situations in the context of distributions from designated Roth accounts and soft guidance on safe harbor distribution notices. Rules effective Jan. 1, 2015, or as early as Sep. 18, 2014, if distributions elected then. IRS hearing on proposed rules is scheduled for Jan. 9. Read more.

SEC Unveils Pilot Program to Aid Analysis of Financial Data | (Dec. 30) The Securities and Exchange Commission announced the launch of a pilot program aimed at facilitating investor analysis and comparisons of public-company financial statement information. Data that companies provide in structured, or machine-readable, formats will be combined and organized into structured data sets posted on the SEC's website and available for use by academics and investors. The data sets will include financial statement data from so-called extensible business reporting language exhibits, known as XBRL, as they are filed with the agency. They will be expanded next year to include information from footnotes to the financial statements. Read more.

Comments on Removal of Roth IRA Distributions | (Dec. 30) Organizations urge IRS to provide examples addressing situations in the context of distributions from designated Roth accounts and soft guidance on safe harbor distribution notices. REG-105739-11 rules would be effective Jan. 1, 2015, or as early as Sept. 18, 2014, if distributions elected then. Business groups commenting on IRS proposed rules about direct rollovers from individual retirement accounts that consist of both after-tax and pre-tax distributions were generally supportive, but they also made suggestions to improve the agency's rulemaking. Texts of the SPARK Institute, ACLI and ABC letters are in TaxCore. Read more.

CFTC Extends Relief for FCMs | (Dec. 29) Staff of the Commodity Futures Trading Commission extended previous no-action relief giving futures commission merchants additional time to obtain acknowledgement letters from depositories stating they will provide the commission with electronic access to FCM account information. Read more. 

This is not an all-inclusive list of congressional, agency and market participant actions related to these issues. It is a snap-shot of what we believe is of most interest to institutional investors. Some links are to subscriber-only sites. 

Be sure to check our website for this InReview, upcoming events, and all our INVESTORS updates.  www.association.institutionalINVESTORS.org