Senate to give new guidelines on securities lending
17 March 2011 Washington DC
Image: Shutterstock
Two US government committee reports have published new guidelines on how securities lending should be explained and practiced in 401(k) plans.
The Senate Special Committee on Aging and Government Accountability Office have each conducted investigations into securities lending and how it affects plan sponsors and investors in employer retirement schemes.
One of the main recommendations is expected to be that employers should provide plan participants with clearer information about the benefits and risks of securities lending in their plan options.
The Senate Aging Committee will also ask the US Labor Department to develop tools and guidance for employers on the benefits and risks of securities lending, and recommend that companies in the business of securities lending report information on their practices to the SEC and bank regulators.
The Senate Special Committee on Aging and Government Accountability Office have each conducted investigations into securities lending and how it affects plan sponsors and investors in employer retirement schemes.
One of the main recommendations is expected to be that employers should provide plan participants with clearer information about the benefits and risks of securities lending in their plan options.
The Senate Aging Committee will also ask the US Labor Department to develop tools and guidance for employers on the benefits and risks of securities lending, and recommend that companies in the business of securities lending report information on their practices to the SEC and bank regulators.
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