COVID-19 Coronavirus U.S. Regulatory Relief Tracker for Registered Funds and Investment Advisers

Federal regulators and self-regulatory agencies have provided relief to registered funds and investment advisers whose operations may be affected by the COVID-19 coronavirus outbreak. They acknowledge that coronavirus-related disruptions may pose challenges to satisfying certain requirements under the Investment Company Act of 1940 as well as the Investment Advisers Act of 1940. In light of these challenges and the necessity for our clients to track these orders on an ongoing, timely basis, Dechert has created the COVID-19 Coronavirus U.S. Regulatory Relief Tracker for Registered Funds and Investment Advisers (Tracker). The Tracker also covers relief and programs provided by bank regulators, as well as aspects of the CARES Act.

The Tracker will highlight key activity as it is announced by the regulatory agencies and generate periodic updates on developments to visitors who subscribe to receive them.

SEC Filings

Date

6/26/20

Summary

Relief for transfer agents

On March 20, the SEC issued an order temporarily exempting transfer agents from certain filing, securities transfer processing, and recordkeeping requirements under the Exchange Act.

On May 27, the SEC further extended this relief until June 30, 2020

On June 26, the SEC further extended this relief until a date to specified in the future.

Important Links

3/20 order

5/27 order

6/26 order

Date

6/19/20

Summary

Virtual meetings, relief from various filing deadlines

On March 4, SEC Staff issued interpretive guidance permitting virtual board meeting approvals of advisory contracts and 12b-1 plans, and approvals of existing auditors, for registered management investment companies (“funds”).

On March 13, SEC Staff issued interpretive guidance permitting virtual shareholder meetings for public companies and funds.

On March 13, the SEC issued an order: (i) permitting virtual board meeting approvals and renewals of advisory contracts and 12b-1 plans, and approvals of auditors, for funds and BDCs; (ii) delaying filing deadlines for Forms N-CEN and N PORT; (iii) delaying deadlines for transmitting annual and semi-annual reports to shareholders; and (iv) exempting BDCs from making 30 day advance notice filings of intentions to call or redeem their securities.

On March 13, the SEC issued an order delaying filing and delivery deadlines for Form ADVs.

On March 25, the SEC issued orders superseding its March 13 orders to extend the filing periods covered by the March 13 orders and the date through which the virtual board meeting relief applies. The extensions vary based on the requirement. For example, virtual board meeting approvals are extended through August 15.

On June 19, the SEC issued an order superseding the March 25 order, extending the relief through at least the remainder of the calendar year.  

Important Links

3/4 Guidance

3/13 Guidance

3/13 IA Relief

3/13 IC Relief

3/25 IA Relief

3/25 IC Relief

6/19 IC Relief

Date

6/12/20

Summary

FINRA Rule Change

On May 20, the SEC enabled the immediate effectiveness of a FINRA rule change to modify certain timing, method of service and other procedural requirements to allow parties to, among other things, file or serve documents electronically.

On June 12, this relief was extended to July 31, 2020.

Important Links

5/20 Release

6/12 Release

Date

5/27/20

Summary

TALF No-Action Relief

On May 27, the SEC staff issued a no-action letter re-affirming that prior letters to Franklin Templeton Investments and T. Rowe Price Associates, Inc., with regard to the original TALF program in 2009 are applicable to the current TALF program.  In the Franklin Templeton letter, the SEC staff stated that it would not recommend enforcement action against a registered open-end and closed-end investment company’s participation in TALF without treating the borrowing as a senior security for purposes of compliance with Sections 18(a)(1), 18(c), and 18(f)(1) of the 1940 Act.  In the T. Rowe Price letter, the SEC staff stated that it would not recommend enforcement action under sections 17(a) or 17(d) of the 1940 Act or Rule 17d-1 thereunder if certain T. Rowe Price funds and accounts participated in TALF through an investment in a 3(c)(1) or 3(c)(7) private fund that was organized specifically to participate in TALF.  The SEC staff stated that third parties may not rely on the T. Rowe Price letter, but the SEC staff expanded that to make it available to third parties and to BDCs. 

Additional coverage on the TALF program can be found below.

Important Links

Staff Letter

OnPoint

Date

5/4/2020

Summary

Regulation Crowdfunding Relief
 
On May 4, the SEC announced temporary, conditional relief from certain requirements under Regulation Crowdfunding in order to facilitate capital formation for small businesses seeking to address urgent funding needs through crowdfunding offerings. The relief relaxes restrictions relating to an offering’s timing  and the availability of financial statements required to be included in offering materials, requiring instead that an issuer satisfy an enhanced eligibility standard.

Important Links

 

Date

4/28/2020

Summary

COVID-19 FAQs
 
SEC Staff has issued FAQs relating to COVID-19 issues, current as of 4/28/20. The FAQs include: (1) updated Advisers Act  Custody rule requirements regarding unexpected delays in distributing audited financials; (2) Discussion of Item 18 disclosure for Advisers that take PPP loans; (3) Relief for delays in delivery by wrap fee participating advisers (4) a summary of relief for RICs.

Important Links

Date

4/22/20

Summary

EDGAR Filing Window Extension on April 29, 2020

On April 22, 2020, the Division of Investment Management issued an announcement indicating that the Division was extending the EDGAR filing window on April 29, 2020, from 5:30 p.m. to 10:00 p.m. EDT for registered investment company and BDC filings, in order to mitigate potential filing delays due to the ongoing impacts of the COVID-19 coronavirus. April 29, 2020 was the date by which a registration statement annual update must be filed for certain registered investment companies and BDCs that have a fiscal year end on December 31. Under applicable rules, a registered investment company or BDC filing submitted after 5:30 p.m. EDT would be considered to be filed the next business day. However, the announcement stated that the Division would automatically adjust the filing date in EDGAR to reflect April 29 for filings submitted after 5:30 p.m. and by 10:00 p.m. EDT.

This extension applied only to filings submitted on April 29, 2020. However, the announcement indicated that a registered investment company or BDC requiring a subsequent filing window extension should submit a request to IMEmergency@sec.gov.  

Important Links

SEC Guidance

Date

4/20/2020

Summary

Phased CAT Broker-Dealer Reporting Timelines
 
On 4/20, the SEC issued an  exemptive order  providing conditional relief from certain consolidated audit trail  (CAT)  reporting requirements  due to the impact. The order was issued as part of a package of exemptive orders aimed at moving CAT implementation forward.

Important Links

 

Date

4/8/2020

Summary

Hearing Requests under 1940 Act and Advisers Act.
 
On 4/8, SEC Staff issued a statement on hearing requests on applications filed under the 1940 Act and Advisers Act of 1940 noting that, due to COVID-19 disruptions, the Commission will be requiring interested persons to submit written hearing requests by sending an e-mail to the SEC’s Secretary.

Important Links

Date

4/8/2020

Summary

Relief for Business Development Companies
 
SEC issued an order providing relief for business development companies (BDCs) to enable them to make additional investments in small and medium-sized businesses, including those with operations affected by COVID-19. The relief provides additional flexibility for BDCs to issue and sell senior securities in order to provide capital to such companies, and to participate in investments in these companies alongside certain private funds that are affiliated with the BDC.   

Important Links

Date

4/2/2020

Summary

Relief from Adviser Custody Rule

On 3/16, SEC Staff issued interpretive guidance stating that, for purposes of the adviser custody rule, if an adviser’s personnel are unable to access mail or deliveries at an office location due to implementation of the firm’s COVID-19 business continuity plan, the adviser will be considered not to have received client assets at that location until firm personnel are able to access the mail or deliveries at that location.

On 3/30, SEC Staff issued guidance extending the deadline for an adviser’s independent public accountant to complete its surprise examination and make the related filing on Form ADV-E, for up to 45 days from the original due date, provided the delay is due to COVID-19 related logistical disruptions experienced by the independent public account.

On 4/2, SEC Staff issued guidance stating that an adviser that ordinarily maintains with a qualified custodian physical certificates used to evidence certain privately issued securities would not be in violation of the adviser custody rule if it does not maintain such certificates with a qualified custodian as a result of a custodian’s closure due to COVID-19, provided certain conditions are met. 

Important Links

SEC Guidance

Date

3/26/2020

Summary

No-action relief under Section 17

On 3/19, SEC Staff issued no-action relief under Section 17(a) and Rule 17a-9 permitting certain banking entities to purchase securities from their affiliated money market funds. Absent this relief, certain banking regulations (e.g., Sections 23A and 23B of the Federal Reserve Act and Regulation W) would have precluded compliance with the conditions set forth in the rule. Conditions include disclosure of reliance on relief on Form N-CR. 

On 3/26, SEC Staff issued no-action relief under Section 17(a) permitting certain entities to purchase debt securities from their affiliated mutual funds (other than ETFs and money market funds). This relief essentially extends Rule 17a-9 relief to non-money market funds that are not ETFs. Conditions include special notification requirements to SEC Staff and Website posting requirements. Consistent with the 3/19 no-action letter, it contains a Regulation W accommodation for banking entities.

Important Links

3/19 ICI Letter, Staff Response

3/19 ICI Letter, Incoming Letter

3/26 ICI Letter, Staff Response

3/26 ICI Letter, Incoming Letter

Date

3/26/20

Summary

Relief from Form ID, Regulation A, Regulation Crowdfunding, Form MA requirements

SEC provided relief regarding: (i) the Form ID Notarization Requirement for parties needing to gain access to make filings on the EDGAR system, (ii) compliance with certain company filing obligations under Regulation A and Regulation Crowdfunding, and (iii) the Annual Update to Form MA filing requirement for municipal advisors.

Important Links

Press Release

Form ID/Reg A/Reg Crowdfunding Temporary Relief

Municipal Advisors Order

Date

3/25/2020

Summary

Guidance on COVID-19 Disclosures

SEC Staff issued guidance directing public companies to consider their disclosure and securities law obligations in light of COVID-19, in sections such as MD&A, the business section, risk factors, legal proceedings, disclosure controls and procedures, internal control over financial reporting, or financial statements.

Important Links

Date

3/25/2020

Summary

Virtual meetings, relief from various filing deadlines

On 3/4, SEC Staff issued interpretive guidance permitting virtual board meeting approvals of advisory contracts and 12b-1 plans, and approvals of existing auditors, for registered management investment companies (“funds”). 

On 3/13, SEC Staff issued interpretive guidance permitting virtual shareholder meetings for public companies and funds.

On the 3/13, the SEC issued an order: (i) permitting virtual board meeting approvals and renewals of advisory contracts and 12b-1 plans, and approvals of auditors, for funds and BDCs; (ii) delaying filing deadlines for Forms N-CEN and N-PORT; (iii) delaying deadlines for transmitting annual and semi-annual reports to shareholders; and (iv) exempting BDCs from making 30 day advance notice filings of intentions to call or redeem their securities. On 3/13, the SEC also issued an order delaying filing and delivery deadlines for Form ADVs.

On 3/25, the SEC issued orders superseding its 3/13 orders to extend the filing periods covered by the 3/13 orders and the date through which the virtual board meeting relief applies. The extensions vary based on the requirement. For example, virtual board meeting approvals are extended through August 15.

On 6/19, the SEC issued an order further extending the date through which the virtual board meeting relief applies. The order extends this relief until December 31, 2020. The order does not extend any other 1940 Act relief granted under the previous orders (e.g., with respect to Form N-CEN and Form N-PORT filings, shareholder report transmittal). 

Important Links

 
 
 
 
 
 

Date

3/25/2020

Summary

Relief from reporting requirements for broker-dealers
 
SEC issued an order extending the deadlines for broker-dealers: (i) to file their initial quarterly reports containing aggregated data about their routing and handling of orders on a held basis in NMS stock and (ii) to begin collecting monthly customer-specific data for their outsourced routing activity.

Important Links

 

Date

3/24/2020

Summary

Relief from manual signature requirements for electronic filings
 
SEC Staff issued interpretive guidance stating that electronic filings, for which manual signatures are required to be obtained in advance of the filings pursuant to Rule 302(b) of Regulation S-T, may be made without first obtaining those signatures so long as the signatory retains an appropriate record (as described in the guidance) demonstrating his/her intention to sign and forwards the signature/record as soon as practicable in accordance with reasonable procedures.

Important Links

Date

3/23/20

Summary

CFTC and NFA relief for registered CPOs and CTAs

The Commodity Futures Trading Commission issued industry-wide no-action relief for registered commodity pool operators on March 20, 2020, to permit those CPOs additional time to make certain regulatory filings and issue certain reports that would otherwise be due in the near term. In addition, the National Futures Association stated to the industry on March 13, 2020 that it would not take disciplinary action against NFA members (which would include registered CPOs and commodity trading advisors), if those firms do not list as branch offices home offices or other remote locations where their associated persons (APs) are temporarily working for business continuity purposes due to the COVID-19 coronavirus pandemic.

Important Links

CFTC and NFA Guidance

Date

3/23/2020

Summary

Relief for affiliate borrowing and interfund lending
 
SEC issued an order providing short-term funding relief to funds and insurance company separate accounts. The order: (i) permits funds (other than money market funds) and separate accounts to borrow from certain affiliates; (ii) allows funds not currently covered by an interfund lending order to use interfund lending in accordance with recent precedent, and relaxes certain standard conditions (e.g., duration of loans) in existing orders; and (iii) authorizes funds (other than money market funds) to deviate from their fundamental policies to participate in otherwise lawful lending and borrowing transactions. 

Important Links

Date

3/20/2020

Summary

Relief for electronic trading
 
On 3/14, SEC noticed for immediate effectiveness a proposed Cboe rule change to facilitate the continued operation of Cboe’s options exchange in light of Cboe’s to temporary suspension of its physical trading floor, to more closely replicate physical trading in the electronic trading environment.
 
On 3/20, SEC noticed for immediate effectiveness a proposed NYSE rule change, providing wider price parameters and removing volume limits within which designated market makers can facilitate electronic auctions, in light of temporary closure of the physical trading floor.

Important Links

 

Date

3/20/20

Summary

Relief for transfer agents
 
SEC issued an order temporarily exempting transfer agents from certain filing, securities transfer processing, and recordkeeping requirements under the Exchange Act.

Important Links

Date

3/16/2020

Summary

No-action relief under Exchange Act, Regulation NMS
 
SEC Staff issued no-action relief under Section 19(g)(1) of the Exchange Act and Rule 608(c) of Regulation NMS permitting Consolidated Audit Trail (CAT) implementation deadlines not to be enforced against industry members on account of COVID-19. 

Important Links

Date

3/16/2020

Summary

Relief from inclusion of temporary teleworking locations on Form ADV
 
SEC Staff issued interpretive guidance stating that temporary teleworking locations being used as part of a firm’s COVID-19 business continuity plan do not need to be reflected in an updated Form ADV as offices at which the advisory business is conducted.

Important Links

Date

3/4/2020

Summary

Relief from filing deadlines for proxies and section 13 and 15 filings
 
SEC issued an order granting public companies temporary relief from certain filing deadlines. The order provides conditional exemptions from: (i) making filings under Section 13(a) or 15(d) of the Exchange Act; and (ii) furnishing proxy statements, information statements, and other related materials under the Exchange Act and rules thereunder. 

Important Links

Other Initiatives
     

Date

7/20/20
 

Summary

Term Asset-Backed Securities Loan Facility
 
On March 23, the Federal Reserve Board announced it would be establishing the Term Asset-Backed Securities Loan Facility to support the flow of credit to consumers and businesses by enabling the issuance of asset-backed securities backed by student loans, auto loans, credit card loans, loans guaranteed by the Small Business Administration, and certain other assets.
 
On April 9, the Federal Reserve Board announced that it would be broadening the range of assets eligible as collateral for TALF, including triple-A rated tranches of both outstanding commercial mortgage-backed securities and newly issued collateralized loan obligations. The updated terms also modified the criteria for borrower eligibility.
 
On May 12, the Federal Reserve Board announced updated terms for TALF. The Federal Reserve Bank of New York concurrently released FAQs in connection with the TALF program. Significantly, the FAQs clarify that an externally managed investment fund may qualify as an eligible borrower under TALF, provided that its manager has “significant operations in and a majority of its employees based in the United States.”
 
On May 20, the Federal Reserve Bank of New York updated its FAQs in connection with the TALF program and announced the first subscription date of June 17.
 
On July 23, the Federal Reserve Board announced an expansion of counterparties in three lending facilities, including TALF, broadening the set of firms eligible to transact with and provide services under the emergency lending facility.
 
On July 28, the Federal Reserve Board announced an extension of its lending facilities, including TALF, through December 31, 2020.
 

Important Links

 
 
 
 
 
 
 
 
 

Date

8/25/20

Summary

Secondary Market Corporate Credit Facility
 
On March 23, the Federal Reserve Board announced it would be establishing a Secondary Market Corporate Credit Facility to provide liquidity for outstanding corporate bonds by purchasing both direct issuances and certain U.S. ETFs investing in a broad range of investment-grade debt. 
 
On April 9, the Federal Reserve Board announced it would be expanding the size and scope of this facility. The facility’s terms were updated to include an allocation to U.S. ETFs investing in U.S. high-yield corporate bonds.
 
On April 17, the Federal Reserve Bank of New York released FAQs in connection with the facility (along with the Primary Market Corporate Credit Facility).
 
On May 4, these FAQs were further updated, including that the Secondary Market Corporate Credit Facility is expected to begin purchasing eligible ETFs in early May.
 
On May 11, the Federal Reserve Bank of New York announced that the Secondary Market Corporate Credit Facility will begin purchasing eligible ETFs on May 12. Concurrent with this announcement, the Federal Reserve Bank of New York released a number of related agreements concerning the facility, including the investment management agreement, which provides additional clarity on the facility’s investment selection criteria.
 
On May 26, the Federal Reserve Bank of New York’s FAQs were further revised, including to clarify the range of eligible NRSRO ratings accepted under the facility and the criteria selection for eligible ETF purchases.
 
On July 23, Federal Reserve Board announced an expansion of counterparties in three lending facilities, including the Secondary Market Corporate Credit Facility, broadening the set of firms eligible to transact with and provide services under the emergency lending facility.
 
On July 28, the Federal Reserve Board announced an extension of its lending facilities, including the Secondary Market Corporate Credit Facility, through December 31, 2020.

Important Links

 
 
 
 
 

Date

Updated
8/25/20
 

Summary

Primary Market Corporate Credit Facility
 
On March 23, the Federal Reserve Board announced it would be establishing a Primary Market Corporate Credit Facility for new bond and loan issuance.
 
On April 9, the Federal Reserve Board announced it would be expanding the scope of this facility.
 
On April 17, the Federal Reserve Bank of New York released FAQs in connection with the facility (along with the Secondary Market Corporate Credit Facility).
 
On May 4, these FAQs were further updated. Among the details including that the Primary Market Corporate Credit Facility is expected to begin purchasing eligible corporate bonds shortly after the Primary Market Corporate Credit Facility becomes operational in early May.
 
On May 26, these FAQs were further revised, including to clarify the range of eligible NRSRO ratings accepted under the facility.
 
On June 29, the Federal Reserve Board released a revised term sheet for the facility, adding pricing and certain other information. The Federal Reserve Bank of New York concurrently updated FAQs for the facility and announced the facility’s launch.
 
On July 28, the Federal Reserve Board announced an extension of its lending facilities, including the Primary Market Corporate Credit Facility, through December 31, 2020.

Important Links

 
 
 
 
 
 

Date

6/25/20

Summary

Uncleared Swap Margin Phase-In Dates

On May 28, the CFTC approved an interim final rule that delays the CFTC’s September 1, 2020 uncleared swap initial margin phase-in date toSeptember 1, 2021 due to the COVID-19 pandemic. 

On June 25, the CFTC proposed a new sixth and final CFTC uncleared swap margin phase-in date as of September 1, 2022.

On June 25, the OCC, Federal Reserve Board, FDIC, FCA, and FHFA approved an interim final rule that delays the September 1, 2020 uncleared swapinitial margin phase-in date to September 1, 2021.

On June 25, the OCC, Federal Reserve Board, FDIC, FCA, and FHFA finalized a proposed new sixth and final uncleared swap initial margin phase-in date as of September 1, 2021.

Important Links

Proposed Rules

Proposed Rules

Interim Final Rules

Final Rules

Date

Updated
6/25/20
 

Summary

CARES Act – Paycheck Protection Program
 
On March 27, Congress passed the CARES Act appropriates up to $454 billion dollars of funding for Federal Reserve programs and operations. The CARES Act is focused primarily on providing economic stimulus and relief from the effects of the pandemic.
 
On April 2, the SBA, in consultation with Treasury, released an interim final rule implementing provisions of the CARES Act relating to the new Paycheck Protection Program, which provides loans to those impacted by COVID-19. The interim final rule builds upon and updates interpretive guidance issued by Treasury on 3/31.
 
On April 3, the SBA issued an additional interim final rule regarding the Paycheck Protection Program,
clarifying the application of certain affiliation requirements for determining borrower eligibility under the program.
 
On April 14, an additional interim final rule was issued on further eligibility criteria and requirements for certain pledges.
 
On April 24, an additional interim final rule was issued to address requirements for promissory notes, authorizations, affiliations and eligibility.
 
On April 24, the SBA also issued a procedural notice relating to the sale of participation interests in
PPP loans.
 
On April 28, an interim final rule was issued providing an additional criterion for the program’s application to seasonal employers.
 
On April 30, an interim final rule was issued limiting PPP loans to an aggregate of $20 million per single corporate group, defined in the rule as companies owned directly or indirectly by a common parent.
 
On May 1, the SBA released another procedural notice relating to the sale of whole loans.
 
On May 5, an interim final rule was issued concerning nondiscrimination obligations and an additional
eligibility requirement.
 
On May 8, an interim final rule was issued extending the date by which certain PPP borrowers may repay their loans from May 7, 2020 to May 14, 2020, in order to avail themselves of a safe harbor with respect to a certification required by the Act, and makes other conforming changes.
 
On May 13, an interim final rule was issued permitting PPP loan increases in certain instances.
 
On May 14, an interim final rule was issued addressing the eligibility criteria for certain electric
cooperatives.
 
On May 18, an interim final rule was issued addressing treatment of entities with foreign affiliates.
 
On May 20, an interim final rule was issued extending a safe harbor with respect to certification concerning need PPP loan and lender reporting.
 
On May 22, an interim final rule was issued regarding loan forgiveness. An additional interim final rule was also issued regarding SBA loan  review procedures, as well as related borrower and lender responsibilities.
 
On June 5, an interim final rule was issued on the eligibility of certain telephone cooperatives.
 
On June 11, an interim final rule was issued revising to the First Interim Final Rule.
 
On June 12, an additional interim final rule was issued further revising the First Interim Final Rule.

On June 17, an interim final rule was issued revising the Third and Sixth Interim Final Rules.
 
On June 22, an interim final rule was issued revising earlier interim final rules relating to loan forgiveness and SBA loan review procedures.
 
On June 24, an interim final rule was issued to introduce further revisions to the First Interim Final Rule.
 
On June 25, an interim final rule was issued regarding eligible payroll costs.
 
Treasury and SBA FAQs have been updated as of June 25, including guidance relating to secondary market transactions and the eligibility of prospective borrowers owned by large companies with adequate sources of liquidity.
 
Additional information is available on the Small Business Administration’s webpage.

Important Links

 
 
 
 
 
 
 
 
 
 
 
 
 
 

Date

Updated
5/15/20

Summary

Money Market Mutual Fund Liquidity Facility
 
On March 18, the Federal Reserve Board announced it would be establishing the Money Market Mutual Fund Liquidity Facility in response to growing concerns about extreme levels of illiquidity in money markets resulting from coronavirus-related uncertainty and the ability of money market mutual funds to meet significant investor demand for redemptions. The Federal Reserve Bank of Boston will administer the facility.
 
On March 19, the Federal Reserve Board and other federal banking agencies released an interim final rule modifying certain applicable capital rules to exclude MMLF activities from a participating financial institution’s regulatory capital requirements.
 
On March 20, the Federal Reserve Board announced that it would be expanding the MMLF to support crucial state and municipal money markets.
 
On March 23, the Federal Reserve Board announced that it would be expanding the MMLF to support crucial state and municipal money markets and that it would be accepting a wider range of securities, including municipal variable rate demand notes and bank certificates of deposit, as eligible collateral.
 
As of May 15, the Federal Reserve Board has released an updated set of FAQs regarding the establishment and operation of the MMLF.
 
On July 28, the Federal Reserve Board announced an extension of its lending facilities, including MMLF, through December 31, 2020.

Important Links

 
 
 
 
 
 

Date

6/25/20

Summary

Modifications to Volcker Rule

On April 2, the Federal Reserve Board, CFTC, FDIC, OCC, and SEC announced they would be extending the comment period for proposed modifications to the Volcker Rule until May 1. The original deadline was April 1.

On June 25, the five federal regulatory agencies finalized a rule modifying the Volker rule, streamlining the covered funds portion of the rule, addressing extraterritorial treatment of certain foreign funds and permitting banking entities to engage in certain other financial services activities. This rule will go into effect October 1.

Important Links

4/2 Press Release

6/25 Press Release

Board Memo

OnPoint

 

Date

Updated
8/25/20

Summary

Municipal Liquidity Facility

On April 9, the Federal Reserve Board announced it would be establishing a Municipal Liquidity Facility to help state and local governments better manage cash flow pressures by purchasing up to $500 billion of short term notes.

On April 27, the Federal Reserve Board announced an expansion of the Municipal Liquidity Facility, and the Federal Reserve Bank of New York concurrently issued FAQs about the facility. Under the new terms, the facility will purchase notes issued by U.S. states, the District of Columbia, U.S. counties with at least 500,000 residents and U.S. cities with at least 250,000 residents. The Federal Reserve Bank of New York has designated PFM Financial Advisors LLC to serve as administrative agent to the facility.

On May 11, the Federal Reserve Board released an updated term sheet and FAQs.

On June 3, the Federal Reserve Board announced an expansion in the number and type of entities able to participate in the facility. 

On August 11, the Federal Reserve Board announced revised pricing for the Municipal Liquidity Fund and released an updated Term Sheet.

Important Links

4/9 Press Release

Term Sheet

4/27 Press Release

FAQs

Administration Agreement

Control Agreement

Credit Agreement

Custodian Agreement

Investment Management Agreement

Limited Liability Company Agreement

Preferred Equity Account Agreement

Fee Letter

8/11 Press Release

Date

Updated
8/25/20
 

Summary

Main Street Lending Program 
 
On April 9, Federal Reserve announced it would be establishing a Main Street Lending Program, under which banks would either originate new Main Street loans or use Main Street loans to increase the size of their existing loans to businesses. Borrowing firms seeking Main Street loans would be required to make reasonable efforts to maintain payroll and retain workers, as well as comply with certain compensation, stock repurchase, and dividend restrictions that apply to direct loan programs under the CARES Act. Notably, borrowers under the Paycheck Protection Program may also take out Main Street loans.
 
On April 30, Federal Reserve announced an expansion of the Program’s scope, including the addition of new priority loan facility that would call for increased risk sharing by borrowers with greater leverage. Significantly, the Program’s updated terms modify the eligibility standards  for businesses seeking to borrow under any of the facilities, defining “ineligible business” by reference to certain SBA rules. As a result many financial institutions, investment companies, or asset managers may be ineligible for any of the Main Street loans.
 
On June 8, the Federal Reserve Board announced an expansion of the Program, including: lowering the minimum loan size for certain loans to $250,000 from $500,000; increasing the maximum loan size for all facilities; increasing the term of each loan option to five years, from four years; extending the repayment period for all loans by delaying principal payments for two years, rather than one; and raising the Federal Reserve Bank of Boston’s participation to 95% for all loans.
 
On June 15, the Federal Reserve Board announced it would be seeking public feedback on a proposal to expand the Program to provide access to nonprofit organizations.
 
On July 17, the Federal Reserve Board announced updates to the term sheet for the facility, allowing for greater eligibility for non-profit entities such as hospitals or educational institutions.
 
On July 28, the Federal Reserve Board announced an extension of its lending facilities, including the PPP facility, through December 31, 2020.
 
On July 31, the Federal Reserve Bank of Boston released lending documents for nonprofit loans.
 
On August 24, the Federal Reserve Bank of Boston released updated Main Street (for profit) FAQs and Nonprofit Organization FAQs.
 
On September 4, the Federal Reserve Bank of Boston announced that it had begun accepting submissions of eligible loans to nonprofit organizations. 

Important Links

 
 
 
 
 
 
 
 
 
 

Date

8/25/20

Summary

Paycheck Protection Program Lending Facility
 
On April 6, the Federal Reserve announced it would be establishing a Paycheck Protection Program Lending Facility to facilitate lending to small businesses pursuant to the Paycheck Protection Program under the CARES Act.
 
On April 9, the Federal Reserve provided further details relating to this facility. The facility will lend to eligible borrowers on a non-recourse basis, taking Paycheck Protections Program loans as collateral.
 
On April 9, Federal banking agencies also issued an Interim Final Rule modifying capital rules to neutralize the regulatory capital effects of participating in the Federal Reserve's PPP facility.
 
On April 16, the Federal Reserve Announced that the facility was fully operational and managed by the Minneapolis Fed.
 
On April 30, the Federal Reserve announced an expansion of the facility to allow access to all SBA approved lenders, including non-depository institutions. In addition, the range of the collateral that may be pledged under the  facility was broadened to include whole PPP loans.
 
On July 28, the Federal Reserve Board announced an extension of its lending facilities, including the PPP facility, through December 31, 2020.

Important Links

 
 
 
 
 
 

Date

4/22/20

Summary

EDGAR Filing Window Extension on April 29, 2020

On April 22, 2020, the Division of Investment Management issued an announcement indicating that the Division was extending the EDGAR filing window on April 29, 2020, from 5:30 p.m. to 10:00 p.m. EDT for registered investment company and BDC filings, in order to mitigate potential filing delays due to the ongoing impacts of the COVID-19 coronavirus. April 29, 2020 was the date by which a registration statement annual update must be filed for certain registered investment companies and BDCs that have a fiscal year end on December 31. Under applicable rules, a registered investment company or BDC filing submitted after 5:30 p.m. EDT would be considered to be filed the next business day. However, the announcement stated that the Division would automatically adjust the filing date in EDGAR to reflect April 29 for filings submitted after 5:30 p.m. and by 10:00 p.m. EDT.

This extension applied only to filings submitted on April 29, 2020. However, the announcement indicated that a registered investment company or BDC requiring a subsequent filing window extension should submit a request to IMEmergency@sec.gov. 

Important Links

Extension Letter

Date

4/1/20

Summary

Temporary change to Supplementary Leverage Ratio Rule
 
Federal Reserve issued an interim final rule that revises, on a temporary basis for bank holding companies, savings and loan holding companies, and U.S. intermediate holding companies of foreign banking organizations, the calculation of total leverage exposure, the denominator of the supplementary leverage ratio in the Board’s capital rule, to exclude the on-balance sheet amounts of U.S. Treasury securities and deposits at Federal Reserve Banks.

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Date

3/31/20

Summary

Delay for Revised Control Framework
 
Federal Reserve announced that it would delay for six months the effective date for its revised control framework for determining when one company controls another company for purposes of the Bank Holding Company Act and Home Owners' Loan Act. The original effective date was 4/1.

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Date

8/25/20

Summary

FIMA Repo Facility
 
Federal Reserve announced it would be establishing a FIMA Repo Facility, a new temporary repo facility for foreign and international monetary authorities with accounts at the Federal Reserve Bank of New York, allowing account holders to exchange treasury securities for U.S. dollars and cash more efficiently than if they were to have sold their treasury securities outright into illiquid markets. The Fed also released a set of FAQs for the FIMA Repo Facility concurrent with this announcement.
 
On July 29, the Federal Reserve Board announced an extension of its FIMA Repo Facility through March 31, 2021.

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Date

3/27/20

Summary

Extension of regulatory capital transition
 
Federal Reserve Board, FDIC, and OCC issued notice providing an optional extension of the regulatory capital transition for the new credit loss accounting standard.

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Date

3/27/20

Summary

Early adoption of new rule on measuring derivatives exposure
 
Federal Reserve Board, FDIC, and OCC issued notice allowing for early adoption of the Standardized Approach to Calculating Exposure Amount of Derivatives Contracts (SA-CCR Rule), a new methodology on how certain banking organizations are required to measure counterparty credit risk derivatives contracts.

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Date

8/25/20

Summary

Commercial Paper Funding Facility
 
On March 17, the Federal Reserve Board announced that it is establishing the Commercial Paper Funding Facility to enhance the liquidity of the commercial paper market by increasing the availability of term commercial paper funding to issuers and by providing greater assurance to both issuers and investors that firms and municipalities will be able to roll over their maturing commercial paper.
 
On March 23, the Federal Reserve Board announced it would be expanding the range of eligible securities under the Commercial Paper Funding Facility to include high-quality, tax-exempt commercial paper and that it would be reducing the pricing of the facility.
 
On March 25, the Federal Reserve Bank of New York released a set of FAQs regarding the operation of the Commercial Paper Funding Facility.
 
On July 23, Federal Reserve Board announced an expansion of counterparties in three lending facilities, including the Commercial Paper Funding Facility, broadening the set of firms eligible to transact with and provide services under the emergency lending facility.

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Date

3/23/20

Summary

CFTC and NFA relief for registered CPOs and CTAs

The Commodity Futures Trading Commission issued industry-wide no-action relief for registered commodity pool operators on March 20, 2020, to permit those CPOs additional time to make certain regulatory filings and issue certain reports that would otherwise be due in the near term. In addition, the National Futures Association stated to the industry on March 13, 2020 that it would not take disciplinary action against NFA members (which would include registered CPOs and commodity trading advisors), if those firms do not list as branch offices home offices or other remote locations where their associated persons (APs) are temporarily working for business continuity purposes due to the COVID-19 coronavirus pandemic.

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No-action Relief

Date

3/23/20

Summary

Purchases of Treasury Securities, Agency Mortgage-Backed Securities, and Agency Commercial Mortgage-Backed Securities
 
Federal Open Market Committee announced purchases of Treasury securities, agency mortgage-backed securities, and agency commercial mortgage-backed securities in the amounts needed to support smooth market functioning and effective transmission of monetary policy to broader financial conditions and the economy.

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Date

8/25/20

Summary

Temporary U.S. Dollar Liquidity Arrangements with Other Central Banks
 
Federal Reserve announced the establishment of temporary U.S. dollar liquidity arrangements (or “swap lines”), to be in place for at least six months, with the following central banks: Reserve Bank of Australia; the Banco Central do Brasil; the Danmarks Nationalbank (Denmark); the Bank of Korea; the Banco de Mexico; the Norges Bank (Norway); the Reserve Bank of New Zealand; the Monetary Authority of Singapore; and the Sveriges Riksbank (Sweden). The purpose of these swap lines is to help lessen strains in global U.S. dollar funding markets. 
 
On July 29, the Federal Reserve Board announced an extension of its swap lines through March 31, 2021.

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Date

3/19/20

Summary

Encouraging Banks to rely on capital and liquidity buffers 
 
FDIC, Federal Reserve Board, and OCC issued two Financial Institution Letters relating to the Regulatory Capital Rule, each of which encourages banks to use their capital and liquidity buffers to manage COVID 19 coronavirus challenges. First, the agencies jointly issued an interim final rule revising the definition of “eligible retained income” for all depository institutions, bank holding companies, and savings and loan holding companies subject to the agencies’ capital rule. Through a separate Financial Institution Letter, the agencies released a set of Q&As in response to a prior statement on the use of capital and liquidity buffers.

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Date

8/25/20

Summary

Primary Dealer Credit Facility
 
Federal Reserve Board announced that it is establishing a Primary Dealer Credit Facility that will offer overnight and term funding with maturities up to 90 days. Credit under this facility is extended in the form of a repurchase agreement transaction and, regardless of the duration of the loan, the rate paid on the loan will be the same as the primary credit rate at the Federal Reserve Bank of New York in effect at the time the loan is made.
 
On July 28, the Federal Reserve Board announced an extension of its lending facilities, including the Primary Dealer Credit Facility, through December 31, 2020.

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Date

3/17/20

Summary

Economic Injury Disaster Loan Program
 
Small Business Administration established the Economic Injury Disaster Loan Program, under which the Small Business Administration will work directly with state Governors to provide targeted, low-interest loans to small businesses and non-profits that have been severely impacted by COVID-19 coronavirus. Small Business Administration issued revised criteria for states and territories seeking an economic injury declaration, allowing for a faster and easier qualification process for states seeking SBA disaster assistance, as well as expanded, state-wide access to SBA disaster assistance. This program is currently available to small business owners in all states.

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