February 8, 2011 Two new statutory instruments, the Investment Bank Special Administration Regulations 2011 and the Investment Bank (Amendment of Definition) Order 2011, have come into effect. These provisions stem from the Banking Act 2009 and establish a new special administration procedure for failing investment banks which facilitates the return of client assets, following the aftermath of the Lehman Brothers insolvency. The Act also makes it possible for the Bank of England to supplement the insolvency procedures under the Banking Act 2009 where an investment bank also takes deposits

News Article Reuters February 9, 2011 In remarks prepared for the hearing and released by the House Agriculture Committee, CFTC Chairman Gary Gensler said margin requirements would be aimed at swap dealers, not end users, who are exempt from clearing requirements. "Proposed rules on margin requirements should focus only on transactions between financial entities rather than those transactions that involve non-financial end users," Gensler said. Cross References Dodd-Frank Act, Title VII, Secs. 723(a)(7) 731; new CEA Secs. 2(h)(7) 4s(e)(3)(A) CWT C&F Memo: Regulation of End Users of Swaps Under

News Article Bloomberg February 9, 2011 The House Agriculture Committee will work to ensure Dodd-Frank Act rules for derivatives trading "do not impose undue or excessive burdens" on financial markets, according to a draft of the panel's oversight plan. U.S. Representative Frank Lucas, the Oklahoma Republican who leads the committee, is circulating a document that says the panel will oversee the timetable, cost and benefit of CFTC rules due by mid-July. Panel members are scheduled to consider Lucas's plan at a meeting tomorrow. Cross References Dodd-Frank Act, Title VII

Financial Services Authority February 9, 2011 Daniel Hassell, a senior interdealer broker at Vantage Capital Markets, was barred from working in regulated financial services by the FSA for acting in a significant influence role without its approval. Although Hassell was not a capital partner of the company, he generated around half of its revenue and received one third of the firm's profits, despite two applications for FSA authorisation of his role previously being rejected. The company had already been fined £700,000 in June 2010 in relation to Hassell's employment.

HM Treasury February 8, 2011 The Chancellor has announced an increase in the rate of the bank levy to be charged in 2011. This change will increase the revenue from the levy by £800m, to £2.5 billion. The Government had initially announced that a reduced rate of 0.05 per cent would apply in 2011, recognising the uncertain market conditions prevailing at the time. The Government no longer considers this necessary. From 1 March 2011 the rate of the levy will be 0.1 per cent for two months, to offset the lower rate of 0.05 per cent charged in January and February, before moving to 0.075 per cent