SUITABILITY: Final rule requiring banks to determine whether customers understand the risks associated with buying government securities. Bank brokers and dealers must obtain information on the financial and tax status and investment objectives of retail customers. They also have to be convinced that institutional investors evaluate investment recommendations and risk independently. To be published soon. Effective July 1.
CORPORATES: The National Credit Union Administration imposed curbs on investments and lending by corporate credit unions and raised capital requirements. Corporates will be placed in one of four categories tied to their capital and the composition of their investment portfolios. Corporates will have to maintain at least 4% capital and be barred from investing in derivatives or foreign countries unless they apply for broader investment powers. In exchange for these added powers, corporates would have to hold 6% capital or more and undergo added oversight. To be published soon. Effective Jan. 1.