This story appeared in Bank Digest.
The Office of the Comptroller of the Currency has alerted national banks of two regulatory proposals that would implement provisions of the Dodd-Frank Act.
The first proposed rulemaking, issued jointly by the banking and securities regulators, would implement the incentive-based compensation provisions of Section 956 of the Act. The joint proposed rule is intended to prohibit incentive based compensation arrangements that encourage inappropriate risk taking by covered financial institutions, described as compensation that is excessive or that may lead to material losses. The specific requirements of the proposal would vary based on the size of the affected institution, although institutions with total assets that do not exceed $1 billion would be exempt.