• SEC Joins FDIC and NCUA in Approving Proposed Regulation of Incentive-Based Compensation
  • March 10, 2011 | Authors: David H. Engvall; Robert Newman
  • Law Firm: Covington & Burling LLP - Washington Office
  • The Securities and Exchange Commission (SEC) approved last week proposed regulations that would limit incentive-based compensation at financial institutions. The regulations would implement Section 956 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Section 956). The proposed regulations are a joint rule making among seven federal agencies including the Office of the Comptroller of the Currency (OCC), the Federal Deposit Insurance Corporation (FDIC), the Board of Governors of the Federal Reserve System (the Federal Reserve Board), the Office of Thrift Supervision (OTS), the National Credit Union Administration (NCUA), and the Federal Housing Finance Agency (FHFA). Last month, the regulations were approved in substantially the same form by the FDIC and the NCUA. The proposed regulations must be approved by all seven agencies before they are published in the Federal Register. The new rules would take effect six months after publication of final regulations.