AFREF sent a comment to the Securities and Exchange Commission calling for the agency to close long-running loopholes that have enabled certain hedge funds to use swaps and derivatives to avoid disclosing large positions which in turn can lead to coordinated attacks on companies and unnecessary volatility in the underlying prices of certain companies’ stocks. The implosion of family office Archegos Capital is emblematic of such a problem as its use of certain derivatives to build over an over 10% position of a company’s outstanding shares were never revealed until after it was forced to unwind and leading Globally Systemically Important Banks (G-SIBs) to take over $10 billion in losses as a result.
Letters to Regulators: Comment Letter Supporting the SEC’s Proposal to Expand Position Disclosure Requirements via Form PF
AFREF sent a comment to the Securities and Exchange Commission supporting the agency’s proposal to expand position disclosure requirements (via Form PF) for both hedge funds and private equity funds. Many of the disclosure exemptions were formed when both types of funds were fractions of the size they are today and would give the SEC and by extension, the Financial Stability Oversight Council (FSOC) critical information to prevent the uncertainty and threats to financial stability that we saw with Long Term Capital Management in 1999 as well as the financial crises of 2008 and March 2020.
AFREF joined the Save Our Retirement Coalition on a letter calling on the Department of Labor to expeditiously update and strengthen the rules governing retirement investment advice to help protect workers and retirees from harmful conflicts of interest.
Letters to Regulators: Comment Letter on DOJ’s Consideration of Whether to Strengthen the 1995 Bank Merger Competitive Review
AFREF sent a letter commenting on the U.S. Department of Justice’s consideration of whether to strengthen the 1995 Bank Merger Competitive Review.
AFREF joined a letter opposing the online lender Figure Bank’s application for a charter.
Today’s proposals from the Securities and Exchange Commission would shed greater light on the investments and activities of what’s now become a massive $11.5 trillion private market.
Treasury Secretary Janet Yellen should prioritize repealing the 2019 Trump-era guidance that prevents federal regulators from properly policing institutions whose collapse would imperil the financial system.
Letters to Regulators: Letter to Secretary Yellen on Restoring FSOC’s Ability to Fully Execute its Authority Under Dodd Frank
AFREF and 30 allies sent a letter to Secretary of the Treasury Janet Yellen urging her to prioritize restoring FSOC’s ability to fully execute its authority under Dodd-Frank by repealing the SIFI 2019 guidance; developing a data strategy for OFR; and using the statutory authority given in Title I of Dodd-Frank to apply a racial equity lens when designating a non-bank financial company as a SIFI.
Letters to Regulators: Letter Calling on the SEC to Rescind the 2010 Ford Motor Credit No-Action Letter
AFREF led a letter calling on the SEC’s Division of Corporation Finance to rescind the 2010 Ford Motor Credit no-action letter that exempts Credit Rating Agencies from legal liability.
Letters to Regulators: Comment Letter in Response to the SEC’s Proposed Rule Related to Expanding the Disclosures Around Securities Lending
AFREF submitted a comment letter to the Securities and Exchange Commission supporting several changes to Rule 10c-1 of the Securities Exchange Act of 1934 that would provide investors and regulators with significantly more information into the currently opaque $1.5 trillion securities lending market.