On October 7, DBRS published its global methodology for rating life and property/casualty insurance companies and insurance organizations.  Methodology.

On October 6, DBRS published its methodology for rating sovereign governments.  Methodology.

On October 5, Fitch updated its methodology for analyzing U.S. Tobacco Settlement ABS.  Criteria.

On October 5, Fitch updated its global rating criteria for trade receivables securitizations.  Criteria.

On October 5, KBRA released a proposed U.S. Equity REITs & REOC rating methodology.  Methodology.

On October 5, Moody's published its approach in considering data quality in structured finance transactions.  Methodology.

On October 2, Moody's published its methodology describing its approach to monitoring existing securities backed by low-income residential construction loans to developers in Mexico.  Methodology.

On October 1, DBRS published its U.S. RMBS rating methodology.  Methodology.

On October 1, DBRS published its rating methodology for European consumer and commercial ABS transactions.  Methodology.

On October 1, DBRS published its methodology for rating companies in the mining industry.  Methodology.

On October 1, DBRS published its methodology for rating operators in the container terminal industry.  Methodology.

On October 1, Fitch updated its criteria for rating U.S. RMBS.  Criteria.

On October 1, Moody's published its methodology for rating public housing authority (PHA) capital fund bonds issued in the U.S. municipal market.  Methodology.

RMBS Contract Claims Against Trustee Dismissed in Part

On October 2, 2015, Justice Saliann Scarpulla of the New York Supreme Court issued an Opinion and Order partially granting Bank of New York Mellon's ("BNYM") Motion to Dismiss an RMBS action brought by Commerce Bank and other RMBS investors (together, the "Plaintiffs").  Justice Scarpulla dismissed Plaintiffs' breach of fiduciary duty claim as well as Plaintiffs' breach of contract claim to the extent it relies on allegations that BNYM failed to provide Plaintiffs with notice of events of default under the transaction documents.  Justice Scarpulla stated that a Trustee's obligation to notify certificateholders of an event of default under the relevant Pooling and Servicing Agreements arises only upon the receipt of written notice that a default has occurred, and that Plaintiffs failed to allege that BNYM had received such written notice.  Justice Scarpulla permitted claims that BNYM had failed to notify certificateholders of breaches of representations and warranties to proceed, but noted that Plaintiffs will ultimately be required to prove the Trustees' actual discovery of those breaches on a loan-by-loan basis.  Justice Scarpulla also permitted breach of contract claims based on BNYM's alleged failure to properly review and examine the loan files and accurately certify what it had received, as well as claims alleging negligence by BNYM.  Order.

RMBS Trustee Wins Partial Dismissal of Investor Claims

On September 29, 2015, Judge Valerie Caproni of the United States District Court for the Southern District of New York partially granted RMBS trustee Bank of New York Mellon's ("BNYM") motion to dismiss claims brought by Phoenix Light SF Ltd., and certain other RMBS investors (together, the "Plaintiffs").  Judge Caproni dismissed Plaintiffs' breach of fiduciary duty claims as duplicative of Plaintiffs' breach of contract claims, whose viability Judge Caproni also appeared to doubt in her decision, noting that "[t]he low bar at the motion to dismiss stage salvage[d] Plaintiffs' claims for now."  Judge Caproni explained that to survive summary judgment, Plaintiffs would need to demonstrate that BNYM possessed actual knowledge of events of default on a loan-by-loan basis.  Judge Caproni denied BNYM's motion to dismiss Plaintiffs' negligence, gross negligence, and negligent misrepresentation claims.  Order.

Text of PSD2 Adopted by European Parliament

On October 9, 2015, the European Parliament published the provisional text of the proposed directive repealing and replacing the Payment Services Directive (2007/64/EC), known as PSD2.

PSD2 will need to be formally adopted by the Council of the EU and will then be published in the Official Journal of the EU, after which date there will be a 2-year implementation period for member states.

ESMA Publishes 2016 Work Program

On October 7, 2015, the European Securities and Markets Authority (ESMA) published its 2016 work program.

The key priorities for 2016 will be:

·    Supervisory Convergence: ESMA's focus will shift increasingly from rulemaking to implementation, and enforcement of common EU rules will be a core focus;

·    The Markets in Financial Instruments Regulation (MiFID II and MiFIR): this will continue to dominate ESMA's work in 2016 but focus will increasingly be on implementation guidelines and Q&A; and

·    Data collection and management: ESMA will continue to develop systems to support activities on supervision, risk monitoring and the single rulebook, as well as working to meet the legal requirements for data collection and reporting set out in MiDIF II and MiFIR.

EBA Opinion on Mortgage Lending Value

On October 5, 2015, the European Banking Authority (EBA) published an opinion on mortgage lending value (MLV). The EBA has the mandate to develop the draft Regulatory Technical Standards (RTS) to specify criterial for assessment of MLV, and is currently of the opinion that the Commission should initiate legislative steps to clarify the scope of the draft RTS empowerment to exclude any implications on covered bonds.

The EBA notes that harmonizing the valuation practices in covered bond markets should be considered as part of a comprehensive review of EU covered bond frameworks.

UK FCA to Consult on Introducing PPI Complaints Deadline

On October 2, 2015, the UK Financial Conduct Authority (FCA) published an announcement that it has decided to consult, by the end of the year, on the introduction of a deadline by which consumers would need to make their PPI complaints or else lose their right to have them assessed by firms or by the Financial Ombudsman.

The current timescale suggests that PPI consumers will have until at least spring 2018 to complain.

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Tuesday, October 20, 2015, from 9:00 AM – 10:00 AM

Speakers

Jason M. Halper
Partner and Co-Chair, Financial Institutions Litigation Practice
Orrick, Herrington & Sutcliffe LLP

Marcy Engel
General Counsel and Chief Compliance Officer
Eton Park Capital Management

Guy David Singer
Partner, White Collar & Corporate Investigations
Orrick, Herrington & Sutcliffe LLP

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