CFTC Grants No Action Relief to Commodity Pool Operators with Respect to Certain Insurance-Linked Securitization Vehicles by Daphne G. Frydman, Brian Barrett, and Raymond A. Ramirez
Toward the end of 2014, the staff of the Commodity Futures Trading Commission’s (“CFTC”) Division of Swap Dealer and Intermediary Oversight (“DSIO”) issued two letters affecting insurance-linked securitization vehicles: CFTC Letter No. 14-145[1] and CFTC Letter No. 14-152.[2]
Both CFTC Letters 14-152 and 14-145, which are summarized below, afford relief from certain Commodity Pool Operator (“CPO”) compliance obligations. Although Letter 14-145 preceded Letter 14-152, the summary begins with Letter 14-152 because Letter 14-145 is a no-action letter that was issued to a specific (and anonymous) market participant and cannot be relied on by other market participants. In contrast, Letter 14-152 was addressed to the Securities Industry and Financial Markets Association (“SIFMA”) and affords industry-wide relief from CPO registration to certain entities that engage in insurance-linked securities transactions.
Ma0037 banking related laws and practicessmumbahelp
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The document provides information on the depository system in India. It discusses key aspects such as what is a depository participant, the two depositories in India (NSDL and CDSL), how securities are held in dematerialized form through a beneficial owner account with a depository participant, and the processes of dematerialization and rematerialization of securities. The depository system eliminates risks associated with physical certificates and provides various benefits to investors such as convenient transfer of securities and safe custody of holdings.
The document provides an overview of Private Placement Programs (PPP), also known as high yield investment programs. PPPs involve the purchase and sale of bank instruments like medium-term notes (MTNs) with the goal of reselling them at a higher price for a profit. A minimum investment of $2 million is required. The document then answers common questions about PPPs, addressing their safety, procedures for submitting documents and blocking funds, expected yields and profits, and ability to withdraw invested amounts. Details are given around buying and reselling MTNs, with the goal of making a 50% profit per transaction through partnerships with trust companies.
This document discusses online trading in securities in India. It begins by defining online trading as placing orders through internet trading platforms offered by broker members. It then outlines some key advantages like lower fees, more flexibility and control, avoiding brokerage bias, and access to online tools. Potential disadvantages discussed include risk of over-trading too quickly, lack of personal broker relationships, addictive nature, and internet dependency. The document also covers the process of online trading including selecting a broker, opening a demat account, order placement, order execution, and settlement.
1. The Securities and Exchange Board of India (SEBI) issued guidelines allowing mutual funds to offer an Instant Access Facility (IAF) to provide same-day redemption proceeds to investors, subject to certain conditions like applicability to liquid schemes only and monetary limits.
2. SEBI also allowed mutual funds to accept investments through e-wallets, subject to complying with regulations on cut-off timings, agreements with e-wallet issuers, and restrictions on total investment and sources of funds loaded in the e-wallet.
3. The circular aims to promote digitalization and enhance reach for retail investors while protecting their interests through appropriate disclosures and controls for facilities like IAF and e-wallet investments
This document provides an overview of Ijarah (Islamic lease) including its essential elements, types, usage, risks, and differences from conventional leasing. Some key points:
- Ijarah allows leasing of an asset where the lessor retains ownership and the lessee pays rent for use of the asset.
- There are two main types - Ijarah Muntahia Bittamleek where ownership can transfer to the lessee, and regular Ijarah.
- Assets like vehicles, equipment and property are commonly leased. Risks include asset prices, repairs and credit.
- An Ijarah contract differs from conventional leasing in areas like insurance responsibility,
The document summarizes Omar Mustafa Ansari's presentation on accounting for Ijarah under Islamic financial accounting standards. It defines Ijarah and Ijarah Muntahia Bittamleek, outlines how they should be accounted for by banks as lessors according to standards, and covers additional treatments for Ijarah Muntahia Bittamleek and impairment. It also summarizes the accounting for sale-and-leaseback transactions from the lessee's perspective under operating Ijarah and Ijarah Muntahia Bittamleek.
Ma0037 banking related laws and practicessmumbahelp
Dear students get fully solved assignments
Send your semester & Specialization name to our mail id :
“ help.mbaassignments@gmail.com ”
or
Call us at : 08263069601
(Prefer mailing. Call in emergency )
The document provides information on the depository system in India. It discusses key aspects such as what is a depository participant, the two depositories in India (NSDL and CDSL), how securities are held in dematerialized form through a beneficial owner account with a depository participant, and the processes of dematerialization and rematerialization of securities. The depository system eliminates risks associated with physical certificates and provides various benefits to investors such as convenient transfer of securities and safe custody of holdings.
The document provides an overview of Private Placement Programs (PPP), also known as high yield investment programs. PPPs involve the purchase and sale of bank instruments like medium-term notes (MTNs) with the goal of reselling them at a higher price for a profit. A minimum investment of $2 million is required. The document then answers common questions about PPPs, addressing their safety, procedures for submitting documents and blocking funds, expected yields and profits, and ability to withdraw invested amounts. Details are given around buying and reselling MTNs, with the goal of making a 50% profit per transaction through partnerships with trust companies.
This document discusses online trading in securities in India. It begins by defining online trading as placing orders through internet trading platforms offered by broker members. It then outlines some key advantages like lower fees, more flexibility and control, avoiding brokerage bias, and access to online tools. Potential disadvantages discussed include risk of over-trading too quickly, lack of personal broker relationships, addictive nature, and internet dependency. The document also covers the process of online trading including selecting a broker, opening a demat account, order placement, order execution, and settlement.
1. The Securities and Exchange Board of India (SEBI) issued guidelines allowing mutual funds to offer an Instant Access Facility (IAF) to provide same-day redemption proceeds to investors, subject to certain conditions like applicability to liquid schemes only and monetary limits.
2. SEBI also allowed mutual funds to accept investments through e-wallets, subject to complying with regulations on cut-off timings, agreements with e-wallet issuers, and restrictions on total investment and sources of funds loaded in the e-wallet.
3. The circular aims to promote digitalization and enhance reach for retail investors while protecting their interests through appropriate disclosures and controls for facilities like IAF and e-wallet investments
This document provides an overview of Ijarah (Islamic lease) including its essential elements, types, usage, risks, and differences from conventional leasing. Some key points:
- Ijarah allows leasing of an asset where the lessor retains ownership and the lessee pays rent for use of the asset.
- There are two main types - Ijarah Muntahia Bittamleek where ownership can transfer to the lessee, and regular Ijarah.
- Assets like vehicles, equipment and property are commonly leased. Risks include asset prices, repairs and credit.
- An Ijarah contract differs from conventional leasing in areas like insurance responsibility,
The document summarizes Omar Mustafa Ansari's presentation on accounting for Ijarah under Islamic financial accounting standards. It defines Ijarah and Ijarah Muntahia Bittamleek, outlines how they should be accounted for by banks as lessors according to standards, and covers additional treatments for Ijarah Muntahia Bittamleek and impairment. It also summarizes the accounting for sale-and-leaseback transactions from the lessee's perspective under operating Ijarah and Ijarah Muntahia Bittamleek.
The document discusses the roles and responsibilities of merchant bankers in India according to SEBI regulations. Key points:
- Merchant bankers are regulated by SEBI and involved in public issues, rights issues, open offers, and buybacks.
- They must meet requirements for capital, staffing, experience, and qualifications.
- As lead managers, they perform key functions like pricing issues, marketing, and preparing offer documents.
- Post-issue, they monitor allotments and refunds, file reports, and ensure investor grievances are addressed.
The document discusses the benefits of a depository system for securities such as reducing risks of lost or fake certificates, expediting transfers and settlements, and facilitating dematerialization of physical shares. It explains the roles of various entities in a depository system like depositories, depository participants, registrars and investors. The document also outlines the benefits of a depository system for investors, issuers and the overall growth and liquidity of capital markets.
Luxembourg has developed into the second largest fund centre in the world. This success has been driven mainly by Luxembourg’s positioning as the leading jurisdiction for retail funds and undertakings for collective investment. A second pillar of funds has been developing markedly, namely investment funds focusing on so-called alternative asset classes, including private equity, real estate/infrastructure and debt, dedicated to a sophisticated and/or institutional/professional investor base.
1) CCPs are not banks and should not take on roles that require banking licenses like directly clearing clients, as they lack tools for efficient risk management of heterogeneous credit risk among direct members.
2) If CCPs allow direct client clearing, the default fund risk will increase significantly and motivate moral hazard among the weakest members.
3) A model with only banks as clearing members is preferable since it allows for homogeneous credit risk due to banks' capital adequacy and leverage regulations.
This document outlines the compliance penalties and powers of various regulatory bodies in India for capital markets and securities trading. It discusses the powers of the Securities and Exchange Board of India (SEBI) to regulate stock exchanges, intermediaries, and listed companies. It also summarizes penalties under the Companies Act, SEBI Act, Depositories Act, and Securities Contracts Regulation Act for various offenses relating to fraudulent trading practices, failure to maintain proper records, non-compliance with directions, and more. Penalties may include fines of up to Rs. 25 crore or imprisonment of up to 10 years.
Dematerialization is the process of converting physical share certificates into electronic form and holding them in a Demat account with a Depository Participant (DP). To dematerialize shares, an investor fills a form with their DP and submits their share certificates. The shares will be credited to their Demat account within 15 days. A Demat account allows investors to buy and sell shares electronically without physical certificates.
This document discusses dematerialization of shares and securities in India. It explains that dematerialization involves converting physical securities like stock certificates into electronic form. It is done to reduce problems with physical certificates like fake or mutilated certificates. The process involves opening an account with a depository participant like NSDL or CDSL, who then transfers the securities from the physical to electronic form. Charges are paid annually to the depository participants for custody and other services. Securities can be rematerialized back into physical form by filling a request form.
Bill discounting allows banks to purchase bills or notes from customers before their maturity and credit the discounted value to the customer's account. It provides working capital financing to the customer. Factoring involves the ongoing assignment of accounts receivable invoices from a client to a factoring company, which provides working capital financing, invoice collection services, and accounts receivable management. Forfaiting involves the discounted purchase of medium-term bills of exchange associated with international trade transactions by a forfaiter, typically with tenors of 6 months to 10 years.
The document discusses establishing an Islamic letter of credit (ILC) for international trade that complies with Islamic law (Shariah). It proposes:
1. Creating an Islamic business environment and global Islamic bank network to ensure all rules and regulations in trade are derived from Islamic law.
2. Islamizing the major banks involved in letters of credit through new Islamic banking windows to minimize conflicts with Shariah requirements.
3. Establishing a Global Islamic Bank Consul and International Islamic Chamber of Commerce to regulate the ILC process and standards.
4. Structuring the ILC based on Islamic contracts like Wakalah, Murabaha, and Musharakah to interpret the roles and procedures
This document is a portfolio management agreement between KRChoksey Shares & Securities Private Limited (KRCSSPL) and a client. It outlines the terms of KRCSSPL providing either discretionary or non-discretionary portfolio management services to the client. Key points include KRCSSPL being authorized to invest the client's funds in securities as it deems fit, maintain books and records of transactions, provide quarterly statements to the client, and open bank and depository accounts on behalf of the client to manage the portfolio. The agreement is in compliance with applicable SEBI regulations for portfolio managers.
This document appears to be an introduction or proposal for a study on the topic of dematerialization of securities. It includes the following:
- An introduction to the topic and objectives of studying dematerialization processes.
- An outline of the document structure, which will include chapters on literature review, company profile, data analysis, conclusion, and bibliography.
- A brief description of the methodology to be used, including both primary and secondary sources of data collection.
- Notes on the scope and limitations of the study, which will focus on the processes and services of depository participants.
The document provides information about factoring and HSBC's factoring services. It defines factoring as the financial transaction where a business sells its accounts receivable to a third party called a factor. It then discusses the key parties and processes involved in factoring transactions, as well as the types of factoring services offered by HSBC, including domestic and international factoring. HSBC aims to be an active partner in managing customers' supply chains and receivables through these factoring products.
Insurance Finance And Investment July 15 2009 Article On Derivatives Regula...whhope
1. A recent opinion from the New York Insurance Department's Office of the General Counsel clarified that under New York Insurance Law, a bank must meet the specific ratings requirements to be considered a "qualified bank counterparty", and cannot meet this standard simply by having a rating of AA-/Aa3 from one ratings agency.
2. New York Insurance Law imposes tighter limits on derivatives transactions with "non-qualified counterparties" than with "qualified counterparties". Insurers must correctly classify each counterparty to ensure they do not exceed these limits.
3. The limits apply to both domestic and foreign insurers regulated in New York. Foreign insurers may exceed the limits if certain conditions are met regarding their
Askari Leasing Limited has various departments to efficiently manage its operations. The key departments include the Operations Department, Marketing Department, MIS Department, COI's Department, and Administration Department. During the internship, the author learned the in-depth working of these departments. The staff was found to be very cooperative and the working environment was congenial. Proper departmentalization and division of labor allows Askari Leasing to provide good client satisfaction and steady growth.
Consultation paper on the replacement of the legal framework governing the o...AtoZForex.com
The Cypriot regulator proposes a new regulatory framework for governing the Cyprus Investment Firms (CIFs) Investors Compensation Fund (ICF) across the island.
This document discusses credit risk in Islamic finance. It begins by defining credit risk as the potential financial loss from a counterparty failing to meet contractual obligations. It then outlines the various types of credit risk exposures that can occur in common Islamic financing contracts such as mudarabah, musharakah, murabahah, ijarah, salam and istisna. The document also discusses IFSB guiding principles for credit risk management, including conducting due diligence reviews and having appropriate risk mitigation techniques. It emphasizes the importance of effective credit risk management for ensuring the financial stability and growth of Islamic banks.
SIPC protects customers of failed brokerage firms by working to return customers' cash, stocks, and other securities from missing customer accounts within certain limits. However, not all investors or losses are protected. Some key points:
- SIPC is not like the FDIC and does not offer unlimited protection of investments. It aims to return customers' securities and up to $500,000 per customer, including $100,000 for cash.
- Eligible investments include stocks, bonds, and securities held in customer accounts, but not items like commodities or limited partnerships.
- In some cases, the trustee may transfer customer accounts to another brokerage firm intact to avoid liquidating assets.
- Claims
Prevention of money laundering class room notes for ca icma pavan kumar
This document discusses money laundering techniques and the Prevention of Money Laundering Act (PMLA) of 2002 in India. It defines money laundering and outlines the key stages in the money laundering process: placement, layering, and integration. It describes common placement methods like structuring deposits and using shell companies. It also discusses the obligations of banks and financial institutions under the PMLA to identify and report suspicious transactions and maintain records. Overall, the document provides an overview of how illegally obtained money is laundered and cleaned to appear legitimate, as well as India's laws aimed at preventing money laundering.
The document discusses frequently asked questions about portfolio managers in India. It defines a portfolio manager and explains the difference between discretionary and non-discretionary managers. It outlines the registration process with SEBI, including fees, capital requirements, and renewal procedures. The document also discusses the contractual agreement between managers and clients, permissible fees, minimum investment amounts, required reports, disclosure obligations, and other operational rules governing portfolio managers in India.
The document discusses a MOOC course designed for vocational and further education educators to deepen their knowledge of individualization and individual study plans. The course used a combination of cMOOC and mOOC models on a learning management system and was structured using the DIANA pedagogical model. It enrolled 155 students but only 6 study groups completed the final assignment. Reasons for the low completion rate included the timing of the course at the end of the school year, difficulties forming study groups on the learning management system, and needing more guidance and counseling.
The EU Solvency II Regime for Insurers: An Update on ImplementationNationalUnderwriter
The document summarizes recent regulatory developments related to the implementation of Solvency II in the UK and EU. It discusses the publication of new rules and guidance by the Prudential Regulation Authority (PRA) on Solvency II requirements. It also outlines new EU regulations setting approval processes for internal models and special purpose vehicles. Finally, it mentions UK regulations coming into force on January 1, 2016 to enable firms to apply for Solvency II requirements verification and approvals in advance.
This article discusses the problems that may arise when a blanket additional insured endorsement is attached to the commercial general liability coverage form.
The reason for blanket additional insured endorsements for use with commercial general liability coverage forms is to eliminate the insurer’s necessity of having to issue individual endorsements (or in the insurance vernacular, scheduled endorsements). That, in fact, is the only advantage because the needs of additional insureds vary and so too, does the nature of the coverage. In other words, a blanket endorsement is not necessarily suited for all persons or organizations requiring additional insured coverage.
An erroneous point about the blanket additional insured endorsement is that it is broad in scope. That is not true! They can be broad if they are amended to fit the needs of a particular class of risks. These endorsements, however, usually are very limited. Another point about the blanket additional insured endorsement is that it will contain more verbiage than a scheduled endorsement, because underwriters will not be underwriting each additional insured request, and out of necessity, must add provisions such as a professional liability exclusion whether such an exposure exists or not.
The document discusses the roles and responsibilities of merchant bankers in India according to SEBI regulations. Key points:
- Merchant bankers are regulated by SEBI and involved in public issues, rights issues, open offers, and buybacks.
- They must meet requirements for capital, staffing, experience, and qualifications.
- As lead managers, they perform key functions like pricing issues, marketing, and preparing offer documents.
- Post-issue, they monitor allotments and refunds, file reports, and ensure investor grievances are addressed.
The document discusses the benefits of a depository system for securities such as reducing risks of lost or fake certificates, expediting transfers and settlements, and facilitating dematerialization of physical shares. It explains the roles of various entities in a depository system like depositories, depository participants, registrars and investors. The document also outlines the benefits of a depository system for investors, issuers and the overall growth and liquidity of capital markets.
Luxembourg has developed into the second largest fund centre in the world. This success has been driven mainly by Luxembourg’s positioning as the leading jurisdiction for retail funds and undertakings for collective investment. A second pillar of funds has been developing markedly, namely investment funds focusing on so-called alternative asset classes, including private equity, real estate/infrastructure and debt, dedicated to a sophisticated and/or institutional/professional investor base.
1) CCPs are not banks and should not take on roles that require banking licenses like directly clearing clients, as they lack tools for efficient risk management of heterogeneous credit risk among direct members.
2) If CCPs allow direct client clearing, the default fund risk will increase significantly and motivate moral hazard among the weakest members.
3) A model with only banks as clearing members is preferable since it allows for homogeneous credit risk due to banks' capital adequacy and leverage regulations.
This document outlines the compliance penalties and powers of various regulatory bodies in India for capital markets and securities trading. It discusses the powers of the Securities and Exchange Board of India (SEBI) to regulate stock exchanges, intermediaries, and listed companies. It also summarizes penalties under the Companies Act, SEBI Act, Depositories Act, and Securities Contracts Regulation Act for various offenses relating to fraudulent trading practices, failure to maintain proper records, non-compliance with directions, and more. Penalties may include fines of up to Rs. 25 crore or imprisonment of up to 10 years.
Dematerialization is the process of converting physical share certificates into electronic form and holding them in a Demat account with a Depository Participant (DP). To dematerialize shares, an investor fills a form with their DP and submits their share certificates. The shares will be credited to their Demat account within 15 days. A Demat account allows investors to buy and sell shares electronically without physical certificates.
This document discusses dematerialization of shares and securities in India. It explains that dematerialization involves converting physical securities like stock certificates into electronic form. It is done to reduce problems with physical certificates like fake or mutilated certificates. The process involves opening an account with a depository participant like NSDL or CDSL, who then transfers the securities from the physical to electronic form. Charges are paid annually to the depository participants for custody and other services. Securities can be rematerialized back into physical form by filling a request form.
Bill discounting allows banks to purchase bills or notes from customers before their maturity and credit the discounted value to the customer's account. It provides working capital financing to the customer. Factoring involves the ongoing assignment of accounts receivable invoices from a client to a factoring company, which provides working capital financing, invoice collection services, and accounts receivable management. Forfaiting involves the discounted purchase of medium-term bills of exchange associated with international trade transactions by a forfaiter, typically with tenors of 6 months to 10 years.
The document discusses establishing an Islamic letter of credit (ILC) for international trade that complies with Islamic law (Shariah). It proposes:
1. Creating an Islamic business environment and global Islamic bank network to ensure all rules and regulations in trade are derived from Islamic law.
2. Islamizing the major banks involved in letters of credit through new Islamic banking windows to minimize conflicts with Shariah requirements.
3. Establishing a Global Islamic Bank Consul and International Islamic Chamber of Commerce to regulate the ILC process and standards.
4. Structuring the ILC based on Islamic contracts like Wakalah, Murabaha, and Musharakah to interpret the roles and procedures
This document is a portfolio management agreement between KRChoksey Shares & Securities Private Limited (KRCSSPL) and a client. It outlines the terms of KRCSSPL providing either discretionary or non-discretionary portfolio management services to the client. Key points include KRCSSPL being authorized to invest the client's funds in securities as it deems fit, maintain books and records of transactions, provide quarterly statements to the client, and open bank and depository accounts on behalf of the client to manage the portfolio. The agreement is in compliance with applicable SEBI regulations for portfolio managers.
This document appears to be an introduction or proposal for a study on the topic of dematerialization of securities. It includes the following:
- An introduction to the topic and objectives of studying dematerialization processes.
- An outline of the document structure, which will include chapters on literature review, company profile, data analysis, conclusion, and bibliography.
- A brief description of the methodology to be used, including both primary and secondary sources of data collection.
- Notes on the scope and limitations of the study, which will focus on the processes and services of depository participants.
The document provides information about factoring and HSBC's factoring services. It defines factoring as the financial transaction where a business sells its accounts receivable to a third party called a factor. It then discusses the key parties and processes involved in factoring transactions, as well as the types of factoring services offered by HSBC, including domestic and international factoring. HSBC aims to be an active partner in managing customers' supply chains and receivables through these factoring products.
Insurance Finance And Investment July 15 2009 Article On Derivatives Regula...whhope
1. A recent opinion from the New York Insurance Department's Office of the General Counsel clarified that under New York Insurance Law, a bank must meet the specific ratings requirements to be considered a "qualified bank counterparty", and cannot meet this standard simply by having a rating of AA-/Aa3 from one ratings agency.
2. New York Insurance Law imposes tighter limits on derivatives transactions with "non-qualified counterparties" than with "qualified counterparties". Insurers must correctly classify each counterparty to ensure they do not exceed these limits.
3. The limits apply to both domestic and foreign insurers regulated in New York. Foreign insurers may exceed the limits if certain conditions are met regarding their
Askari Leasing Limited has various departments to efficiently manage its operations. The key departments include the Operations Department, Marketing Department, MIS Department, COI's Department, and Administration Department. During the internship, the author learned the in-depth working of these departments. The staff was found to be very cooperative and the working environment was congenial. Proper departmentalization and division of labor allows Askari Leasing to provide good client satisfaction and steady growth.
Consultation paper on the replacement of the legal framework governing the o...AtoZForex.com
The Cypriot regulator proposes a new regulatory framework for governing the Cyprus Investment Firms (CIFs) Investors Compensation Fund (ICF) across the island.
This document discusses credit risk in Islamic finance. It begins by defining credit risk as the potential financial loss from a counterparty failing to meet contractual obligations. It then outlines the various types of credit risk exposures that can occur in common Islamic financing contracts such as mudarabah, musharakah, murabahah, ijarah, salam and istisna. The document also discusses IFSB guiding principles for credit risk management, including conducting due diligence reviews and having appropriate risk mitigation techniques. It emphasizes the importance of effective credit risk management for ensuring the financial stability and growth of Islamic banks.
SIPC protects customers of failed brokerage firms by working to return customers' cash, stocks, and other securities from missing customer accounts within certain limits. However, not all investors or losses are protected. Some key points:
- SIPC is not like the FDIC and does not offer unlimited protection of investments. It aims to return customers' securities and up to $500,000 per customer, including $100,000 for cash.
- Eligible investments include stocks, bonds, and securities held in customer accounts, but not items like commodities or limited partnerships.
- In some cases, the trustee may transfer customer accounts to another brokerage firm intact to avoid liquidating assets.
- Claims
Prevention of money laundering class room notes for ca icma pavan kumar
This document discusses money laundering techniques and the Prevention of Money Laundering Act (PMLA) of 2002 in India. It defines money laundering and outlines the key stages in the money laundering process: placement, layering, and integration. It describes common placement methods like structuring deposits and using shell companies. It also discusses the obligations of banks and financial institutions under the PMLA to identify and report suspicious transactions and maintain records. Overall, the document provides an overview of how illegally obtained money is laundered and cleaned to appear legitimate, as well as India's laws aimed at preventing money laundering.
The document discusses frequently asked questions about portfolio managers in India. It defines a portfolio manager and explains the difference between discretionary and non-discretionary managers. It outlines the registration process with SEBI, including fees, capital requirements, and renewal procedures. The document also discusses the contractual agreement between managers and clients, permissible fees, minimum investment amounts, required reports, disclosure obligations, and other operational rules governing portfolio managers in India.
The document discusses a MOOC course designed for vocational and further education educators to deepen their knowledge of individualization and individual study plans. The course used a combination of cMOOC and mOOC models on a learning management system and was structured using the DIANA pedagogical model. It enrolled 155 students but only 6 study groups completed the final assignment. Reasons for the low completion rate included the timing of the course at the end of the school year, difficulties forming study groups on the learning management system, and needing more guidance and counseling.
The EU Solvency II Regime for Insurers: An Update on ImplementationNationalUnderwriter
The document summarizes recent regulatory developments related to the implementation of Solvency II in the UK and EU. It discusses the publication of new rules and guidance by the Prudential Regulation Authority (PRA) on Solvency II requirements. It also outlines new EU regulations setting approval processes for internal models and special purpose vehicles. Finally, it mentions UK regulations coming into force on January 1, 2016 to enable firms to apply for Solvency II requirements verification and approvals in advance.
This article discusses the problems that may arise when a blanket additional insured endorsement is attached to the commercial general liability coverage form.
The reason for blanket additional insured endorsements for use with commercial general liability coverage forms is to eliminate the insurer’s necessity of having to issue individual endorsements (or in the insurance vernacular, scheduled endorsements). That, in fact, is the only advantage because the needs of additional insureds vary and so too, does the nature of the coverage. In other words, a blanket endorsement is not necessarily suited for all persons or organizations requiring additional insured coverage.
An erroneous point about the blanket additional insured endorsement is that it is broad in scope. That is not true! They can be broad if they are amended to fit the needs of a particular class of risks. These endorsements, however, usually are very limited. Another point about the blanket additional insured endorsement is that it will contain more verbiage than a scheduled endorsement, because underwriters will not be underwriting each additional insured request, and out of necessity, must add provisions such as a professional liability exclusion whether such an exposure exists or not.
20111105 white lotus sutra and concentration developmentTom
The document discusses factors for developing concentration in Buddhism. It lists mindfulness, detachment, patience, and healthy living conditions as important factors. It also describes the five stages of mastery in concentration: mastery in adverting, entering, sustaining, emerging, and reflection on the absorption experience. Developing strong mindfulness and mastery over these stages can lead to deeper, more tranquil states of absorption.
Social media is a conversation using online tools. While some people are not involved in social media, many visitors are. The document then provides statistics on the popularity and usage of various social media platforms including Facebook, Twitter, Google+, Pinterest, Instagram, Flickr, Foursquare, TripAdvisor, and YouTube. These statistics show that social media has billions of users engaging every day, demonstrating the importance of using social media for businesses and organizations.
The document is a Valentine's Day card from an individual to their partner "Sugarbear" expressing their love for them. It also includes a poem by Elizabeth Barrett Browning describing the depth and passion of her love. The poem discusses loving someone to the depths of one's soul, in everyday life, freely striving for what is right, and purely without need for praise. It expresses loving with the passion of past griefs and childhood faith, and a love that will continue even after death.
The third meeting of 100 Women Who Care about Long Island resulted in over $6,000 being donated to Pal-O-Mine Equestrian. Pal-O-Mine's mission is to provide therapeutic equine programs to help children and adults with disabilities, those abused or neglected, the military, and the economically compromised. A member gave a nomination speech explaining how the donation would help Pal-O-Mine's program for battered women. As a group, the 100 Women Who Care are able to donate more and make a larger impact than individuals can alone. Their next meeting will be on April 8th.
1. Academic Earth is an online education platform that provides full video courses from 6 leading universities including Harvard, Yale, MIT, Stanford, Berkeley, and Princeton.
2. In its first 3 months of beta launch, Academic Earth received over 1.1 million visits, with 54% of visits coming from outside the US and representing 213 countries.
3. The most popular subjects on Academic Earth are computer science, entrepreneurship, economics, mathematics, and engineering, with users particularly drawn to career-focused subjects.
Digitalkonferansen 2012 cloud, consumerization, cloud and all the rest-morg...Digin
The document discusses key concepts related to cloud computing, consumerization, and collaboration. It defines the cloud as delivering IT as a service using pooled, elastic resources. Consumerization refers to new technologies emerging first in consumer markets and spreading to businesses. Collaboration technologies facilitate linking humans to work together using tools like email, messaging, and social media. The document outlines various cloud services and delivery models, challenges of consumerization like BYOD, and ensuring collaboration works across devices and services.
Ratios of a Clearing and Fowarding agencyNishant Shah
This document provides an introduction to ratio analysis and outlines various types of ratios used to evaluate business performance and financial health. It discusses current, liquid, debt-to-equity, and other ratios that measure liquidity, solvency, turnover, and profitability. Specific ratios are defined, such as current ratio, liquid ratio, debt-to-equity ratio, and gross profit ratio. Examples of ratios for years 2007-08 through 2009-10 are given for an example company. The document emphasizes that ratios should be compared over time and to industry benchmarks to truly understand a company's financial position.
The document discusses listing Eurobonds on the Channel Island Stock Exchange (CISX). Key points:
- The CISX is a recognized stock exchange where Eurobonds can be listed, enabling interest to be paid without tax deduction.
- Listing Eurobonds on the CISX offers advantages like fast turnaround, competitive pricing, and less disclosure requirements compared to other exchanges.
- The CISX takes a flexible approach to listing requirements. For example, it may waive financial statement requirements for special purpose vehicles (SPVs) issuing intra-group debt. SPVs just need to disclose terms and conditions of the debt issue.
- Listing fees are typically £3,925 with additional £125 per issue. Sponsor fees
This document discusses key aspects of securitization under the SARFAESI Act in India. It defines important terms related to securitization such as originator, obligor, asset reconstruction, and qualified institutional buyer. It describes the steps involved in a securitization transaction, from loan origination to the issuance of asset-backed securities. The advantages of securitization to investors, sellers/originators, and financial markets are provided. Finally, some legal and regulatory issues pertaining to securitization in India are outlined.
This document discusses key aspects of securitization under the SARFAESI Act in India. It defines important terms related to securitization such as originator, obligor, asset reconstruction, and qualified institutional buyer. It describes the steps involved in a securitization transaction, from loan origination to the issuance of asset-backed securities. The advantages of securitization to investors, sellers/originators, and financial markets are provided. Finally, some legal and regulatory issues pertaining to securitization in India are outlined.
This document provides guidance from the Ministry of Finance in Vietnam on applying international accounting standards for the presentation of financial statements and disclosures of financial instruments. It defines key terms related to financial instruments such as financial assets, financial liabilities, derivatives, amortized cost, and fair value. It also provides guidance on classification of financial instruments, recognition and measurement, and disclosure requirements. The purpose is to standardize practices in Vietnam according to international standards.
truCrowd Education for Non accredited InvestorstruCrowd, Inc
The risks of investing in startups and the process of selling/buying securities via a funding portal (truCrowd).
The potential benefits are easy to grasp, as anyone can become a mini angel investor.
Please visit us at https://us.trucrowd.com/ to learn more.
The document discusses a proposal by the Arab Gambian Islamic Bank to create an Islamic Leasing Investment Fund (ILIF) to manage excess liquidity in a Sharia-compliant manner. The proposal suggests that the ILIF would use investor funds to purchase real estate, vehicles, and equipment for leasing to generate rental income. Investors would receive certificates entitling them to a share of actual fund profits. The Central Bank of The Gambia could use the fund to finance purchases for government agencies. Comments are provided on making the fund and certificates compliant with Sharia principles and developing the proposal.
2d Cost Option For The Measurement Of Certain Insurance ContractsDoug Barnert
This document provides background information for developing an ACLI position on adding a cost option for measuring certain insurance contracts. The IASB and FASB are developing an accounting standard for insurance contracts that proposes a "current fulfillment" model, unlike IFRS 9 which allows fair value or amortized cost. There is concern this could disadvantage insurers compared to other financial institutions. Extracts from IFRS 9 are provided as a starting point for a cost option proposal, focusing on classification based on business model and contractual cash flows consisting solely of principal and interest.
This document discusses special purpose vehicles (SPVs) used in securitization. It provides details on:
1) The concept and purpose of SPVs, which are established to hold securitized assets separately from the originator in order to provide bankruptcy protection to investors.
2) Examples of SPVs used in different countries, including the roles of Fannie Mae, Freddie Mac, and Ginnie Mae in the US mortgage market, as well as structures used in Argentina and Morocco.
3) The use of SPVs in India and desired characteristics such as bankruptcy remoteness, independent corporate existence, and tax neutrality. It evaluates companies, trusts, and mutual funds as potential SPV structures.
The Securities and Exchange Commission has issued new rules and regulations governing crowdfunding to allow startups and small businesses greater access to funding. Under the rules, crowdfunding must be conducted through registered intermediaries using online platforms. Issuers are limited to raising P10-50 million depending on investor qualifications. Investors' total investments across issuers are capped at 5-10% of annual income. Intermediaries must meet minimum capital and disclosure requirements to protect investors. The rules aim to support financial innovation while ensuring market integrity and investor protection.
EarlyShares SEC Comment Letter 2 - February 2014EarlyShares
The document provides comments on proposed rules for Regulation Crowdfunding. Some key points made include:
1) The proposed financial disclosure and ongoing reporting requirements will be too costly for many issuers, potentially deterring participation. Costs could exceed 100% of funds raised for some smaller offerings.
2) Issuers should have more control over sensitive information and who can access it, rather than all information being publicly available. A permission-based system would provide more protection and trust.
3) Funding portals should have flexibility to limit offerings based on both objective and subjective criteria, and to highlight certain offerings, to differentiate their platforms and services.
The commenter provides recommendations to address these concerns,
IDFC Money Manager Fund_Scheme information documentJubiIDFCDebt
This document provides information on the IDFC Money Manager Fund scheme. Some key points:
- The scheme aims to generate stable returns with low risk by investing predominantly in money market instruments.
- It offers growth and dividend options under both regular and direct plans. The face value of units is Rs. 10.
- The benchmark is the Nifty Money Market Index. There is no entry or exit load.
- The scheme carries risks associated with investing in debt/money market instruments like interest rate risk, credit risk and liquidity risk.
IDFC Money Manager Fund_Scheme information documentIDFCJUBI
This document provides information on the IDFC Money Manager Fund, an open-ended debt scheme that invests predominantly in money market instruments. The objective is to generate stable returns with low risk by investing in money market instruments. It aims to provide short term optimal returns with relative stability and high liquidity while maintaining principal at moderately low risk. The fund offers daily, weekly, monthly dividend options (payout and reinvestment) as well as growth options under the regular and direct plans. Key details around NAV disclosure, portfolio disclosure, expenses and load structure are also provided.
This document provides an accredited investor representation letter template for issuers conducting a Rule 506(c) securities offering using general solicitation. The letter includes a cover letter to send to prospective investors explaining the purpose of the accredited investor representation letter. The representation letter itself collects information to verify each investor's accredited status. It also includes an annex with a template third-party verification letter that can be used to confirm accredited status through a broker, attorney or accountant. The document provides drafting notes on key aspects of the representation letter and reasonable steps issuers must take to verify accredited status under Rule 506(c).
As the CRD IV and Basel III implementation date approaches, those sell-sides and buy-sides which best adapt to the changing regulatory requirements will reap the highest rewards.
Our white paper shows why we believe it’s crucial for both sides to assess their own long-term trading strategy and to choose their next steps as early as possible – or be forced into a decision by the market.
The document proposes amendments to NFA Compliance Rule 2-30 regarding customer information and risk disclosure. It outlines additions to the information that must be obtained from individual customers, including approximate age, employment status, estimated liquid net worth, marital status and dependents for those trading security futures. It also requires annual verification that customer information remains accurate and notification if any changes are made. The proposed amendments are submitted to the CFTC for review and approval.
02-Term-Finance-Certificates and their operations.pdfHaroon742118
It is axiomatic that development of capital markets is sine qua non to the growth and
prosperity of a country’s economy. This paper is an attempt to analyse a potential source of capital
financing which has not heretofore taken in root in Pakistan. It focuses on commercial paper and
debentures, with particular emphasis on term finance certificates (“TFCs”). This paper is organized as
follows:
(A) Concept of Commercial Paper;
(B) Secured Debentures and Bottlenecks;
(C) TFC’s, Stamp Duty and the Structure for Private Placement with Investors;
(D) Capital Issues (Continuance of Control) Act, 1947 (the “Capital Issues Act”) and
Offering/Placement of TFC’s;
(E) Public Offering of TFC’s and Bottlenecks;
(F) Convertible TFC’s
(G) TFC’s and Islam; and
(H) Conclusions.
This document provides an overview of credit derivatives, including:
- Their origin in the 1980s securitization market and formal launch in 1991.
- Definitions, including that they allow one party to transfer credit risk of a reference asset to another party.
- Types, including credit default swaps, total return swaps, and credit linked notes.
- Benefits for banks and financial institutions, such as freeing up capital, maintaining client relationships, constructing customized risk portfolios, and diversifying credit risk.
The document outlines the Insurance Business Law of Myanmar. It establishes an Insurance Business Supervisory Board to oversee and regulate the insurance industry. The Board is tasked with licensing insurers, underwriters, and brokers and ensuring they follow principles of financial soundness, transparency, and protection of policyholders. The law aims to develop the insurance sector in Myanmar through increased private investment while maintaining oversight over operations and taking administrative action or pursuing penalties for any violations of its provisions.
This document provides an investor awareness guide for trading stocks on the Pakistan Stock Exchange (PSX). It outlines important responsibilities and requirements for investors including knowing your broker and ensuring they are properly registered, filling out standardized account opening forms correctly, understanding how customer funds and securities are segregated, how to place trading orders, and important rights for investors like receiving trade confirmations and account statements. The guide aims to educate investors and ensure they take a prudent approach when trading stocks on the PSX.
Similar to CFTC Grants No Action Relief to Commodity Pool Operators with Respect to Certain Insurance-Linked Securitization Vehicles (20)
Excess and Surplus Lines Law: A 3-State Sample of a Complete State-by-State C...NationalUnderwriter
Welcome to the 2015 Excess and Surplus Lines Law: A State-by-State Compendium!
This is a 3-state sample of the FREE complete, 186-page state-by-state compendium.
This state-by-state compendium, culled from FC&S Legal’s Eye on the Experts column, is taken from the 2015 Excess and Surplus Lines Laws in the United States Manual, contributed by John P. Dearie, Jr., John N. Emmanuel, Robert A. Romano, and Paige D. Waters, attorneys at Locke Lord LLP, which reflects all of the pertinent changes in the surplus lines laws and regulations of the 50 states and U.S. territories including a special section on the Non-Admitted and Reinsurance Reform Act (“NRRA”) and the steps surplus lines carriers and brokers should be
taking now to ensure compliance with this groundbreaking legislation.
Easy to use and highly informative, this State-by-State Compendium will be your go-to resource for Excess and Surplus Lines Law around the nation.
Get your complete--and complimentary--compendium today: https://fs8.formsite.com/sbmedia/form1661/index.html
How to Successfully Navigate the Latest Changes to the Affordable Care ActNationalUnderwriter
From ALM's National Underwriter comes a timely and necessary ACA presentation covering:
Employer Mandate Penalties
• Reporting Requirements
• Small Business Health Options (SHOP) Changes
• Cadillac Tax Delay
• Delay of Menu Labeling Rule
• Other Affordable Care Act Changes
• Changes to IRS Forms
• Statistics
Finding in Favor of Insurer, Jury Rejects Homeowners¹ Bid for $600,000 for Wa...NationalUnderwriter
From the NEW Verdicts & Settlements section of FC&S Legal: The Insurance Coverage Law Information Center: Finding in Favor of Insurer, Jury Rejects Homeowners¹ Bid for $600,000 for Water Damage to Their Home
A Florida jury has rejected a couple’s claim that they were entitled to $600,000 from their homeowner’s insurance company for water damage to their residence, finding that the damage claimed by the couple had not been caused by water flowing from a water spout that had been left on overnight.
Facts & Allegations
Andres and Doris Cabo alleged that on January 11, 2011, their residence in Miami-Dade County sustained property damage as a result of their daughter leaving the kitchen faucet’s filtered water spout on overnight. The couple filed a claim with their insurance carrier, Security First Insurance, for water damage to their home.
Arbitration in Insurance Coverage Disputes: Pluses and MinusesNationalUnderwriter
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Supreme Court of Texas Marries Contractual Limitations to Insurance PoliciesNationalUnderwriter
Supreme Court of Texas Marries Contractual Limitations to Insurance Policies by Tom Stilwell, John English, Justin T. Scott, and J. Sean Jain
In a case that has been closely watched by the oil and gas industry and its insurers, the Supreme Court of Texas recently issued its opinion in In re Deepwater Horizon, and settled the debate concerning whether a company’s insurance policies stood alone or were married to and dependent upon an insured’s limited obligation in a separate contract to insure and indemnify a third party. Specifically, the court found that Transocean’s $750 million primary and excess insurance policies did not offer unrestricted coverage to BP as an additional insured, but instead incorporated and were bound by the
limitations placed on Transocean’s liability under the parties’ drilling contract (the “Drilling Contract”).
Supreme Court of New Jersey Confirms "Fairly Debatable" Standard for First Pa...NationalUnderwriter
Supreme Court of New Jersey Confirms "Fairly Debatable" Standard for First Party Bad Faith; Acknowledges Relevance of Actual Investigation by Frederic J. Giordano and Robert F. Pawlowski
The Supreme Court of New Jersey recently issued an important pair of decisions for policyholders with bad faith claims against their first-party insurance companies in Badiali v. New Jersey Manufacturers Insurance Group[1] and Wadeer v. New Jersey Manufacturers Insurance Company.[2] In Badiali and Wadeer, the court reiterated the narrow “fairly debatable” standard as the threshold for bad faith claims in New Jersey. But, the court also opened the door to modify this standard in the Badiali decision by recognizing the relevance of the actual claims handling in a particular case.
Pennsylvania Supreme Court Holds Policyholders May Assign Their Statutory Rig...NationalUnderwriter
Pennsylvania Supreme Court Holds Policyholders May Assign Their Statutory Right to Recover Punitive Damages Arising from Insurer¹s Bad Faith by Sara N. Brown and Roberta D. Anderson
In an issue of first impression, the Pennsylvania Supreme Court recently held in Allstate Prop. & Cas. Ins. Co. v. Wolfe[1] that a policyholder may assign statutory bad faith claims under Pennsylvania’s bad faith statute, Section 8371,[2] to a third party claimant.
Importantly, Wolfe resolves the conflict among Pennsylvania and federal decisions regarding the assignability of the right to recover statutory bad faith damages, and allows assignees to seek punitive damages under the statute against an insurer who acts in bad faith.
New York State Department of Financial Services Expands Its Cyber Focus to In...NationalUnderwriter
New York State Department of Financial Services Expands Its Cyber Focus to Insurers by Eric R. Dinallo, Jeremy Feigelson, David A. O’Neil, Jim Pastore, and Jordan R. Friedland
The New York State Department of Financial Services (“DFS”) recently announced a major expansion of its cybersecurity efforts: DFS will require insurers to respond to a special “comprehensive risk assessment” on cybersecurity, with those assessments to be followed by an enhanced focus on cybersecurity as part of DFS’s regular examinations of insurers. DFS’s announcement expands to insurance the increasingly rigorous approach it has recently applied to banks in the area of cyber security. More importantly, it offers critical guidance to all industries about what regulators will consider adequate precautions and preparation in this area.
Migrating Sand Triggers Separate Policy Limits for CGL Policy¹s Personal Inju...NationalUnderwriter
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Cyber Security and Insurance Coverage Protection: The Perfect Time for an AuditNationalUnderwriter
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2014 ended almost the same way that it began for most companies – having concerns about cyber security and hackers. At the beginning of the year, the news cycle was focused on breaches that took place in the consumer product space as Target, Michael’s, Neiman Marcus, and Home Depot worked fast and furious to address breaches that led to concerns about a massive amount of credit card information possibly being “in the open.” Later in the year, we learned that corporate giants like JPMorgan Chase and Apple were not immune from cyber security breaches as still more personally identifiable information and very personal photographs were released into the public domain. Finally, as 2014 drew to a close, the entertainment industry was further rocked by the cyber-attack on Sony Corp., which led to even broader concerns about national security and terrorist threats.
Class Actions: Insurance Related Claims
by Thomas F. Segalla
Whether prosecuting or opposing a motion for class certification, within the context of insurance related claims, there are certain principles that are critical to determining the allegations that are necessary to successfully assert such claims and the nature of any challenge to a motion to certify the punitive class. As the court noted, in the case of Deborah Mahon v. Chicago Title Insurance Co.:[1]
Clarifying Bad Faith Jurisprudence in Virginia, Federal Court Recognizes Bad ...NationalUnderwriter
Clarifying Bad Faith Jurisprudence in Virginia, Federal Court Recognizes Bad Faith Claim Against First-Party Insurer by Michael S. Levine
In Great Am. Ins. Co. v. GRM Mgmt., LLC,[1] a federal district court denied an insurer’s motion to dismiss a bad-faith claim arising out of the insurer’s denial of its policyholder’s claim for property damage and loss of business income following the theft of rooftop air conditioning units from the policyholder’s hotel. The ruling is significant because it illustrates that Virginia law supports first-party bad-faith claims against insurers.
CFTC Grants No-Action Relief to Commodity Pool Operators with Respect to Cert...NationalUnderwriter
CFTC Grants No-Action Relief to Commodity Pool Operators with Respect to Certain Insurance-Linked Securitization Vehicles
Toward the end of 2014, the staff of the Commodity Futures Trading Commission’s (“CFTC”) Division of Swap Dealer
and Intermediary Oversight (“DSIO”) issued two letters affecting insurance-linked securitization vehicles: CFTC Letter No. 14-145[1] and CFTC Letter No. 14-152.[2]
Both CFTC Letters 14-152 and 14-145, which are summarized below, afford relief from certain Commodity Pool Operator (“CPO”) compliance obligations. Although Letter 14-145 preceded Letter 14-152, the summary begins with Letter 14-152 because Letter 14-145 is a no-action letter that was issued to a specific (and anonymous) market participant and cannot be relied on by other market participants. In contrast, Letter 14-152 was addressed to the Securities Industry and Financial Markets Association (“SIFMA”) and affords industry-wide relief from CPO registration to certain entities that engage in insurance-linked securities transactions.
N.J. Trial Court Applies "Named Storm" Deductible in Superstorm Sandy Case
A New Jersey trial court has ruled that the “Named Storm” deductible applied to an insured’s claim in a Superstorm Sandy case.
The Case:
Wakefern Food Corporation, a buying cooperative of owners/operators of Shoprite and PriceRite supermarkets that purchased commercial property insurance from Lexington Insurance Company, claimed over $50 million in losses from Superstorm Sandy. Lexington paid about $22 million, and Wakefern sued the insurer.
Wakefern asserted that Superstorm Sandy was not a “Named Storm” by definition when it hit New Jersey and its losses had occurred. It asserted that when the storm hit New Jersey at approximately 8:00 p.m. EDT on October 29, 2012, the storm was not declared by the National Weather Service to be a hurricane, typhoon, tropical cyclone, or tropical depression, as its policy defined Named Storm. Wakefern pointed out that as of 5:00 p.m. EDT on October 29, 2012,
the storm already was “expected to transition into a frontal or wintertime low pressure system shortly.” Wakefern
contended that by 7:00 p.m. EDT, the National Weather Service’s National Hurricane Center (“NHC”) had declared the storm a “Post-Tropical Cyclone.” Wakefern argued that a “Post-Tropical Cyclone” was defined in the glossary of NHC terms as its own weather event and that a Post-Tropical Cyclone was a “former tropical cyclone” not a “Hurricane, Typhoon, Tropical Cyclone, Tropical Storm or Tropical Depression.”
Clarifying Bad Faith Jurisprudence in Virginia, Federal Court Recognizes Bad-...NationalUnderwriter
Clarifying Bad Faith Jurisprudence in Virginia, Federal Court Recognizes Bad-Faith Claim Against First-Party Insurer
In Great Am. Ins. Co. v. GRM Mgmt., LLC,[1] a federal district court denied an insurer’s motion to dismiss a bad-faith claim arising out of the insurer’s denial of its policyholder’s claim for property damage and loss of business income following the theft of rooftop air conditioning units from the policyholder’s hotel. The ruling is significant because it illustrates that Virginia law supports first-party bad-faith claims against insurers.
Wisconsin Supreme Court: Pollution Exclusion Bars Coverage for Well Contamin...NationalUnderwriter
The Wisconsin Supreme Court ruled that standard pollution exclusions in insurance policies bar coverage for groundwater contamination resulting from the application of manure and septic waste as fertilizers. Specifically, the court found that while manure and septic waste may have beneficial uses as fertilizers, they unambiguously fall under the definition of "pollutants" in the insurance policies once they contaminate water supplies and cause damage. The ruling resolved conflicting lower court decisions on this issue. However, the court noted there may still be limitations to the pollution exclusion depending on the specific circumstances.
New York High Court Finds Lead Exposure Injuries to Children of Different Fam...NationalUnderwriter
New York High Court Finds Lead Exposure Injuries to Children of Different Families a Single Loss for Coverage Purposes
In its recent decision in Nesmith v. Allstate Ins. Co.,[1] the New York Court of Appeals ruled that lead paint exposure
injuries suffered by the children of two different families occupying the same apartment in successive periods constitute a single “accidental loss” subject to a single per-occurrence limit pursuant to the non-cumulation clause in two successive policies issued by a landlord’s insurer.
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The document is a collection of 14 "Valentine's Day Words of Wisdom" from the IRS that play on concepts from tax law in relation to the holiday of Valentine's Day. Each item presents a humorous or punny reference to a tax concept such as accelerated depreciation for lingerie rentals, characterizing a QTIP trust as the "tip of the iceberg", or announcing the launch of a dating website called QDOTCOM for citizens seeking non-citizen spouses. The document is intended to be lighthearted and poke fun at tax law concepts through the lens of Valentine's Day.
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Jay Katz, author of The Tools & Techniques of Income Tax Planning, addresses the IRS Halloween Bag of Tricks in a recent posting to his blog, Tool & Techniques World of Financial & Tax Planning.
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Here are some common scenarios in which courts might lift the corporate veil:
Fraud or Illegality: If shareholders or members use the corporate structure to perpetrate fraud, evade legal obligations, or engage in illegal activities, courts may disregard the corporate entity and hold those individuals personally liable.
Undercapitalization: If a corporation is formed with insufficient capital to conduct its intended business and meet its foreseeable liabilities, and this lack of capitalization results in harm to creditors or other parties, courts may lift the corporate veil to hold shareholders or members liable.
Failure to Observe Corporate Formalities: Corporations and LLCs are required to observe certain formalities, such as holding regular meetings, maintaining separate financial records, and avoiding commingling of personal and corporate assets. If these formalities are not observed and the corporate structure is used as a mere façade, courts may disregard the corporate entity.
Alter Ego: If there is such a unity of interest and ownership between the corporation and its shareholders or members that the separate personalities of the corporation and the individuals no longer exist, courts may treat the corporation as the alter ego of its owners and hold them personally liable.
Group Enterprises: In some cases, where multiple corporations are closely related or form part of a single economic unit, courts may pierce the corporate veil to achieve equity, particularly if one corporation's actions harm creditors or other stakeholders and the corporate structure is being used to shield culpable parties from liability.
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This document briefly explains the June compliance calendar 2024 with income tax returns, PF, ESI, and important due dates, forms to be filled out, periods, and who should file them?.
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CFTC Grants No Action Relief to Commodity Pool Operators with Respect to Certain Insurance-Linked Securitization Vehicles
1. The Insurance Coverage Law Information Center
The following article is from National Underwriter’s latest online resource,
FC&S Legal: The Insurance Coverage Law Information Center.
CFTC GRANTS NO-ACTION RELIEF TO COMMODITY POOL
OPERATORS WITH RESPECT TO CERTAIN INSURANCE-LINKED
SECURITIZATION VEHICLES
Daphne G. Frydman, Brian Barrett, and Raymond A. Ramirez
February 3, 2015
Toward the end of 2014, the staff of the Commodity Futures Trading Commission’s (“CFTC”) Division of Swap Dealer
and Intermediary Oversight (“DSIO”) issued two letters affecting insurance-linked securitization vehicles: CFTC Letter
No. 14-145[1] and CFTC Letter No. 14-152.[2]
Both CFTC Letters 14-152 and 14-145, which are summarized below, afford relief from certain Commodity Pool Operator
(“CPO”) compliance obligations. Although Letter 14-145 preceded Letter 14-152, the summary begins with Letter 14-152
because Letter 14-145 is a no-action letter that was issued to a specific (and anonymous) market participant and cannot
be relied on by other market participants. In contrast, Letter 14-152 was addressed to the Securities Industry and Financial
Markets Association (“SIFMA”) and affords industry-wide relief from CPO registration to certain entities that engage in
insurance-linked securities transactions.
CFTC Letter 14-152
Letter 14-152, which was issued on December 18, 2014, permits certain entities that engage in insurance linked securities
(“ILS”) transactions to avail themselves of the exemption from CPO registration afforded by CFTC Rule 4.13(a)(3), so long
as certain conditions, described below, are met.[3] The relief afforded by Letter 14-152 is not self-executing and must be
claimed with the National Futures Association (“NFA”), as is generally the case with regard to the CFTC Rule 4.13(a)(3)
exemption. The relief afforded by Letter 14-152 is not time limited and, therefore, so long as such relief is not amended
or revoked, it can be relied on indefinitely.
Rule 4.13(a)(3) and Why Relief is Necessary
Under the Commodity Exchange Act (“CEA”), as interpreted by the CFTC, any collective investment vehicle that engages
in even one commodity interest transaction (i.e., a futures, option or swap) could be a “commodity pool.”[4] The operator
of a commodity pool is required to register as a “commodity pool operator” with the CFTC, unless it is eligible for an
exemption from CPO registration or an exclusion from CPO status. To the extent that an entity is eligible for an
exemption from CPO registration or an exclusion from CPO status, such entity is not required to satisfy the compliance
obligations applicable to CPOs.
An ILS issuer is a vehicle of pooled assets through which investors (i.e., bondholders) obtain exposure to specified
trigger events. The mechanism by which this is accomplished is the risk transfer contract between the ILS issuer and the
Protection Buyer. To the extent that such risk transfer contract could be considered a swap, then the ILS issuer would be
a commodity pool, and the ILS issuer’s operator could be required to register as a CPO.[5]
There are numerous exclusions and exemptions from CPO status and CPO registration, respectively. Among them is
CFTC Rule 4.13(a)(3). Rule 4.13(a)(3) exempts persons from registration if four criteria are met:
1. Interests in the relevant commodity pool are exempt from registration under the Securities Act of 1933, and such
interests are offered and sold without marketing to the public in the United States;
2. The commodity pool must at all times meet a de minimis commodity interest trading activity threshold. Namely,
either (a) the margins, premiums and required minimum security deposit for retail forex transactions cannot
exceed five percent of the liquidation value of the commodity pool’s assets after giving effect to unrealized profits
or losses, or (b) the aggregate net notional value of the commodity pool’s commodity interest positions, determined
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2. at the time the most recent position was established, cannot not exceed 100 percent of the liquidation value of
the commodity pool’s portfolio, after taking into account unrealized profits and unrealized losses;
3. The operator of the commodity pool believes, at the time of investment, that each investor in the pool meets
one of certain enumerated tests relating to the financial sophistication of the investor (e.g., accredited investor
or qualified eligible person); and
4. Participations in the commodity pool are not marketed as or in a vehicle for trading in commodity interests.[6]
SIFMA, in its representations to the CFTC staff, indicated that ILS transactions typically satisfy the first three of Rule
4.13(a)(3)’s four criteria for relief:
- According to Letter 14-152, ILS issuers offer their bonds in private placements and such bonds are exempt from
registration under the Securities Act of 1933, and the bonds are not offered or sold through marketing to the
public in the United States. Thus, such ILS transactions meet Rule 4.13(a)(3)’s first condition for relief.
- Moreover, ILS issuers can, and according to SIFMA will, comply with Rule 4.13(a)(3)’s de minimis threshold.
- Last, ILS transactions are typically only sold to sophisticated institutional investors meeting the qualified eligible
purchaser standard, in compliance with Rule 4.13(a)(3)’s third condition for relief.
However, because the risk transfer contract is the mechanism by which bondholders obtain exposure to insurance-linked
risk, according to the CFTC, it is difficult to argue that ILS transactions are not the primary source of investment gains
and losses to the bondholders. Therefore, ILS transactions, whose underlying risk transfer agreement is a swap, could,
according to the CFTC, “involve the marketing of ILS Issuers and their Bonds as vehicles for investing interests in violation
of the fourth prong of Regulation 4.13(a)(3).”
According to Letter 14-152, ILS transactions are typically offered via an offering circular that includes a risk analysis report,
prepared by an independent company, that uses models widely employed by insurers and reinsurers in their own risk
evaluations. The risk analysis forms much of the basis on which bonds are evaluated, rated and priced. Following numerous
representations from SIFMA, the CFTC staff deemed it appropriate to characterize (1) the marketing efforts associated
with ILS transactions as focused on the analysis and statistical modeling of insurance risks to and for which the Protection
Buyer is actually exposed, and (2) the risk transfer contract as merely a conduit to transmit the insurance-related risks of
the Protection Buyer through the ILS issuer to the bondholders.
Relief Granted
Based on SIFMA’s representations and the CFTC staff’s conclusions resulting therefrom, Letter 14-152 permits ILS issuers
to avail themselves of the CFTC Rule 4.13(a)(3) exemption provided that they meet the following requirements:
1. The operator of the ILS issuer meets the first three conditions for exemption of CFTC Rule 4.13(a)(3).
2. The operator of the ILS issuer files a notice of eligibility for exemption from CPO registration with the NFA in
accordance with the requirements of CFTC Rule 4.13(b) (which also requires an annual reaffirmation of the
exemption).
3. The ILS issuer is operated in the following manner:
- There is no active management of assets and liabilities over the lifetime of the ILS issuer.
- The collateral (Eligible Collateral) held by the ILS issuer must at all times:
A. Be in the form of cash or cash-equivalent, “highly-liquid” assets, i.e., assets that can be converted into
cash within one business day without a material discount in value, limited to:
i. Puttable debt issued by the International Bank for Reconstruction and Development, the European
Bank for Reconstruction and Development, or the Kreditanstalt für Wiederaufbau;
ii. Any U.S. or European Union-regulated money market fund that invests solely in debt issued by the
U.S. Treasury or U.S. sponsored agencies, or repurchase and reverse repurchase agreements
collateralized by debt issued by the U.S. Treasury or U.S. sponsored agencies;
iii. Other assets that are “highly liquid” under CFTC Rule 1.25; or
iv. Any other CFTC- or DSIO-approved collateral; and
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3. B. Either have a maturity date that falls on or before the termination date of the risk transfer contract
entered into by the ILS issuer, or be convertible to cash upon demand by the ILS issuer.
4. Upon becoming aware that the value of collateral held by the ILS issuer is less than the notional amount of the
relevant risk transfer contract, the ILS issuer (a) shall promptly notify the DSIO of the same in writing, and copies
of such notice must be provided to the Protection Buyer and the bondholders pursuant to the notice procedures
in the applicable transaction documentation, and (b) shall neither issue any additional bonds nor enter into any
commodity interest transactions for so long as such deficiency exists.
5. The payment obligations of the ILS issuer to the Protection Buyer and to the bondholders must be secured by
Eligible Collateral, and the security arrangements must provide that obligations to the Protection Buyer under
the relevant risk transfer contract will be satisfied from the Eligible Collateral prior to any proceeds of the Eligible
Collateral being used to repay principal to the bondholders.
6. The Eligible Collateral shall be maintained by the ILS issuer so that it is available to be distributed in the form of
cash or in kind to the Protection Buyer at the time a payment becomes due under the risk transfer contract.
7. The Eligible Collateral held by the ILS issuer shall be subject to arrangements that protect the Protection Buyer in
the event that the ILS issuer becomes subject to an insolvency proceeding. This condition will be satisfied if the
ILS issuer satisfies the following criteria:
- The powers of the ILS issuer shall be limited so that the ILS issuer may not engage in business or activity other
than as necessary or appropriate for serving as an ILS vehicle;
- The ILS issuer can be restricted from incurring additional debt, except as may be necessary or appropriate for
entering into additional ILS offerings in the case of a multi-user issuer, in which case the obligation to repay
such additional debt shall be secured solely by additional Eligible Collateral obtained in connection with such
additional ILS offering;
- The ILS issuer shall be restricted from entering into any additional commodity interest transactions beyond the
swap transaction necessary for the ILS offering, except that in the case of a multi-use ILS issuer, the ILS issuer
may enter into additional swaps to the extent it is necessary or appropriate in order to enter into additional
ILS offerings;
- The ILS issuer shall be governed by a board of directors (or other similar body) comprised of individuals
independent of the Protection Buyer;
- Corporate formalities shall be observed between the ILS issuer, on the one hand, and the Protection Buyer
and affiliates of the Protection Buyer;
- As a condition to any agreement imposing obligations on the ILS issuer, the interest holders, the Protection
Buyer and any potential creditors of the ILS issuer shall be required to waive any right to file an involuntary
bankruptcy petition for the ILS issuer or otherwise initiate a solvency, liquidation, dissolution, or other action
having a substantially similar effect with respect to the ILS issuer; and
- The ILS issuer shall be prohibited from filing a voluntary petition for bankruptcy and from engaging in a
merger, asset sale, consolidation, liquidation, dissolution, or other action having a substantially similar effect.
CFTC Letter 14-145
Letter 14-145, which was issued on November 12, 2014, relieves an anonymous registered CPO, “A,” from having to
satisfy the CPO financial statement delivery requirements under CFTC Rule 4.22 and the disclosure requirements of CFTC
Rule 4.24(s), in each case with respect to an ILS issuer.[7] Because Letter 14-145 is a no-action letter that is addressed to
a specific market participant, it cannot be relied on by market participants generally. However, it is nevertheless useful
because it provides insight into the CFTC staff’s view of ILS transactions within the context of the CPO regulatory regime.
Background
As described in Letter 14-145, the ILS issuer in question entered into a risk transfer agreement to transfer excess
mortality life insurance risk from an insurance company, C, and certain of its affiliates (the Protection Buyer), to investors
in insurance- linked notes issued by the ILS issuer and pursuant to which the Protection Buyer agreed to make quarterly
payments to the ILS issuer in exchange for the ILS issuer’s commitment to make payments to the Protection Buyer upon
the occurrence of certain excess mortality events. The quarterly payments made by the Protection Buyer, together with
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4. investment returns on collateral held by the ILS issuer resulting from the sale of the insurance-linked notes, fund the
interest payments to the holders of the ILS issuer’s insurance-linked notes. Such returns were generated from investment
in a pool of “high-quality instruments,” including “AAA” rated bonds and U.S. Treasury-only money market funds.
Relief Granted from CFTC Rules 4.22 and 4.24(s)
CFTC Rule 4.22
CFTC Rule 4.22 requires a registered CPO to distribute periodic account statements and annual reports to each pool
participant and to submit copies of such statements and reports to the NFA.[8] The purpose of CFTC Rule 4.22 is to
ensure that commodity pool participants receive accurate, fair and timely information on the overall trading performance
and financial condition of the pool.
As argued, the provision of periodic account statements and annual reports to the holders of the ILS issuer’s notes, in
accordance with CFTC Rule 4.22, would not provide relevant information to the holders of the ILS issuer’s notes. This is
because the ILS issuer in question has predefined assets and liabilities and its activities largely consist of holding eligible
investments, receiving quarterly payments from the Protection Buyer, and using such investments and payments, as
applicable, to pay its obligations under the risk transfer agreement or to investors in accordance with the terms of the
ILS issuer’s notes. Thus, there is no management of assets and liabilities over the lifetime of the ILS issuer. As a result of
A’s representations concerning the ILS issuer, the staff of the DSIO deemed it appropriate to replace the requirements of
CFTC Rule 4.22 with the disclosures required as conditions for relief, described below, certain of which are already made
by the ILS issuer in an Offering Circular Supplement provided by the ILS issuer to the holders of its notes.
CFTC Rule 4.24(s)
CFTC Rule 4.24 requires a registered CPO to make certain general disclosures, in a disclosure document, to each prospective
participant in a pool that it operates.[9] Among such disclosures are those required by subsection (s) of Rule 4.24, which
relate to the inception of trading of a commodity pool. Specifically, CFTC Rule 4.24(s) requires the disclosure of:
1. the minimum aggregate subscriptions that are necessary for a commodity pool to commence trading;
2. the minimum and maximum aggregate subscriptions that may be contributed to a commodity pool;
3. the maximum period of time that a pool will hold funds prior to the commencement of trading;
4. the disposition of funds received if a commodity pool does not receive the necessary amount to commence
trading, including the period of time within which the disposition will be made; and
5. where a CPO will deposit funds received prior to the commencement of trading by a pool.
The principal purpose of these disclosures is to ensure that commodity pool participants are informed about the material
facts regarding a commodity pool before they commit their funds.
In its request for relief, A argued that CFTC Rule 4.24(s) is not applicable to the ILS issuer in question due to the structure
of ILS transactions. According to A, the information about subscriptions is known ahead of closing and disclosed in the
offering prospectus supplement and pricing settlement, because a predefined principal amount of the notes is to be
issued. In addition, the other disclosures required by CFTC Rule 4.24(s) are irrelevant because the risk transfer agreement
between the ILS issuer and the Protection Buyer is entered into concurrently with the issuance of notes to investors by
the ILS issuer. Based on these representations, the staff of the DSIO deemed it appropriate to afford relief from the Rule
4.24(s) disclosure requirements, subject to the conditions for relief described below.
The Conditions for Relief
The CFTC granted relief to A from the requirements of CFTC Rules 4.22 and 4.24(s) on the following conditions:
1. That A provide the holders of the ILS issuer’s notes with the following information on at least a monthly basis:
- All payments that have been made during the month prior pursuant to the risk transfer agreement, and all
payments that have at least a reasonable possibility of being payable pursuant to the risk transfer agreement.
- Material performance information concerning the assets supporting the ILS issuer’s notes or the obligations
under the risk transfer agreement, including without limitation, any swaps held in the issuer’s portfolio.
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5. 2. That A provide the holders of the ILS issuer’s notes with basic, material information concerning all of the
following, to the extent an existing investor has not received such information, at the same time or before the
information required above is first provided:
- The terms and conditions of the risk transfer agreement, including the risks agreed to be borne by the ILS
issuer;
- The structure of the securities and distributions thereon;
- The nature and servicing of the assets supporting the ILS issuer’s notes and the obligations under the risk
transfer agreement including, without limitation, a discussion of any swaps held in the ILS issuer’s portfolio,
including the function of such swaps; and
- The ILS issuer’s counterparties.
3. To prospective holders of the ILS issuer’s notes, A must provide the most recent copy of the information required
to be provided to the existing holders of notes of the ILS issuer that are described immediately above.
4. If A knows or should know that the above information is materially inaccurate or incomplete in any respect, it
must correct the defect and distribute the correction consistent with the CFTC’s rules concerning the correction
of disclosure documents, which are found in CFTC Rule 4.26(c).
5. There is to be no management of assets or liabilities over the lifetime of the ILS issuer.
6. A must calculate net asset value with respect to the ILS issuer in the following manner:
- Fixed income securities rated BB and higher should be treated as debt.
- All other fixed income securities and equity tranches should be treated as equity.
Finally, Letter 14-145 does not excuse A from complying with other applicable requirements under the CEA or CFTC
regulations promulgated thereunder.
APPENDIX A
ILS Transaction Summary
The relief afforded in Letter 14-152 is premised on the following ILS transaction structure, which market participants will
note is consistent with the typical structure used in the market. Thus, Letter 14-152 should have some general applicability.
ILS transactions allow insurance companies (Protection Buyers) to obtain collateralized protection against insurance-
related risks from the capital markets, pursuant to a risk transfer contract with an ILS issuer, which is a special purpose
vehicle formed by the Protection Buyer.
In an ILS transaction, a Protection Buyer will form an ILS issuer. The Protection Buyer and the ILS issuer subsequently enter
into a risk transfer contract, pursuant to which the ILS issuer agrees to make payments to the Protection Buyer if certain
trigger events occur. The example used in Letter 14-152 is that of an insurance company that has historically had exposure
to California earthquakes. Such an insurance company could create an ILS issuer and contract with such issuer to receive
payments if a California earthquake occurs, and the Protection Buyer must pay claims to earthquake insurance policyholders.
To support its obligations under the risk transfer contract, an ILS issuer sells bonds, notes, certificates or other instruments
(Bonds) in an amount equal to its maximum exposure under the risk transfer contract. Bonds are only sold to persons who
are qualified institutional buyers that, with respect to U.S. persons, are also qualified purchasers.[10] All proceeds of the
Bonds are deposited into a collateral account. Upon the occurrence of a specified trigger event (e.g., an earthquake in
California, in the above example), the ILS issuer pays the contractual payment amount to the Protection Buyer from the
collateral account. Coverage provided by the ILS issuer cannot exceed the collateralized amount. When amounts are
transferred from the collateral account to cover a specified trigger event under a risk transfer contract, the aggregate
principal amount of the Bonds is written down in the amount of such transfer.
As part of the risk transfer contract, the Protection Buyer makes payments to the ILS issuer to cover the ILS issuer’s expenses
and to pay interest to the holders of the Bonds (Bondholders). The Bondholders’ interest rate payments consist of a
portion of the Protection Buyer’s payments plus the earnings on investments of the proceeds from the Bond issuance.
At maturity and upon satisfaction of the risk transfer contract obligations to the Protection Buyer, funds from the collateral
account are used for repayment of the remaining principal balance of the Bonds to the Bondholders.
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6. Notes
[1] http://www.cftc.gov/ucm/groups/public/@lrlettergeneral/documents/letter/14-145.pdf.
[2] http://www.cftc.gov/ucm/groups/public/@lrlettergeneral/documents/letter/14-152.pdf.
[3] See Appendix A for a description of the ILS transaction structure for which Letter 14-152 affords relief.
[4] See 77 Fed. Reg. 11,252 (Feb. 24, 2012) at 11,258. See also 7 U.S.C. § 1a(10).
[5] The term “swap” is broadly defined. See Section 1a(47) of the CEA and the joint CFTC and Securities and Exchange
Commission regulations adopted to further define the term, 77 Fed. Reg. 48,207 (Aug. 13, 2012).
[6] See 17 C.F.R. § 4.13(a)(3) (2014).
[7] The directors of the ILS issuer in question delegated their CPO obligations with respect to the ILS issuer to A, and such
delegation satisfied the CPO-delegation requirements outlined in CFTC Letter No. 14-126.
[8] 17 C.F.R. § 4.22 (2014).
[9] 17 C.F.R. § 4.24(s).
[10] Qualified purchasers are “qualified eligible persons” as defined in CFTC Regulation 4.7(a), 17 C.F.R. § 4.7(a) (2014).
About The Authors
Daphne G. Frydman is a partner in Sutherland Asbill Brennan’s Washington D.C. office. She helps companies in the
financial services industry raise capital through a broad range of financing, including life insurance reserve securitizations,
and general corporate finance transactions including senior debt financing, structured finance, convertible notes, and retail
notes. She may be contacted at daphne.frydman@sutherland.com.
Brian Barrett is a partner in Sutherland Asbill Brennan’s New York office. He advises insurers, reinsurers, banks, broker-
dealers, hedge funds, and asset managers on all aspects of structured finance, secured lending, and derivatives. He may be
contacted at brian.barrett@sutherland.com.
Raymond A. Ramirez is an associate at Sutherland Asbill Brennan, where he represents clients in matters related to
derivatives and structured products, and counsels clients on compliance with the Dodd-Frank Act. He may be contacted at
ray.ramirez@sutherland.com.
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