SEC publishes Dodd-Frank implementation schedule
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WASHINGTON—The Securities and Exchange Commission has published a schedule of when it intends to issue new rules implementing sections of the Dodd-Frank Reform and Consumer Protection Act.
Areas that the agency estimates it will deal with the first half of this year include asset-backed securities, clearing and settlement; corporate governance and disclosure; credit ratings; derivatives; and oversight of investment advisers and broker-dealers.
With regard to corporate governance, the SEC said Thursday that it plans to address section 952 of Dodd-Frank, which requires disclosure about the role of and potential conflicts involving compensation consultants.
The schedule also lists sections 953, 954 and 955.
• Section 953 requires additional disclosure about compensation matters that include pay-for-performance and the ratio between a CEO's total compensation and the median total compensation for all other company employees.
• Section 954 requires the SEC to direct the stock exchanges to prohibit listing securities of issuers that have not developed and implemented compensation “claw-back” policies. Claw-back polices deal with the recovery of executive compensation if it is determined the compensation was excessive.
• Section 955 requires additional disclosure about whether directors and employees are permitted to hedge any decrease in the market value of their company's stock.
Implementing Dodd-Frank is considered a key issue this year by the Washington-based American Insurance Assn.
