Bankowość · 11.01.2007

Interagency Statement on Sound Practices Concerning Elevated Risk Complex Structured Finance Activities

The Agencies are adopting an Interagency Statement on Sound Practices Concerning Elevated Risk Complex Structured Finance Activities ("Final Statement"). The Final Statement pertains to national banks, state banks, bank holding companies (other than foreign banks), federal and state savings associations, savings and loan holding companies, U.S. branches and agencies of foreign banks, and SEC-registered broker-dealers and investment advisers (collectively, "financial institutions" or "institutions") engaged in complex structured finance transactions ("CSFTs"). In May 2004, the Agencies issued and requested comment on a proposed interagency statement ("Initial Proposed Statement"). After reviewing the comments received on the Initial Proposed Statement, the Agencies in May 2006 issued and requested comment on a revised proposed interagency statement ("Revised Proposed Statement"). The modifications to the Revised Proposed Statement, among other things, made the statement more principles-based and focused on the identification, review and approval process for those CSFTs that may pose heightened levels of legal or reputational risk to the relevant institution (referred to as "elevated