AFP’s Government Relations Legislative & Regulatory Update

1. AFP’s Government Relations Legislative & Regulatory Update Brian Kalish Director, Finance Practice Association for Financial Professionals AFP, Association for Financial Professionals and the AFP logo are registered trademarks of the Association for Financial Professionals.

2. AFP Advocacy – Who We Are • The Advocate for Treasury and Financial Professionals • AFP communicates on behalf of our members with policy makers and opinion leaders including: • Congress; • Administration and Federal Agencies; • Rule-Making Bodies such as the SEC, CFTC, Public Company Accounting Oversight Board & NACHA; and • The Media. AFP, Association for Financial Professionals and the AFP logo are registered trademarks of the Association for Financial Professionals.

3. AFP’s Government Relations Committee (GRC) • AFP’s Government Relations Committee (GRC) meets twice a year in Washington, DC to meet with policy makers and discuss AFP’s Public Policy Agenda. • The GRC consists of senior-level corporate practitioners from a diverse range of businesses and backgrounds. • The GRC is divided into three broad task forces: • Financial Markets • Payments & Technology • Financial Accounting & Investor Relations (FAIR) AFP, Association for Financial Professionals and the AFP logo are registered trademarks of the Association for Financial Professionals.

4. AFP Advocacy – Our Successes • Some Major Accomplishments during the 111th Congress: • AFP Chairman Michael Connolly testified before the first joint hearing of the SEC & CFTC. • AFP GRC members met with CFTC Chairman Gary Gensler. • AFP President & CEO Jim Kaitz testified before the SEC on Credit Rating Agency Reform. • AFP GRC Members met with White House National Economic Council Staff. • AFP GRC & Payments Advisory Group (PAG) took part in a conference call with the Government Accountability Office (GAO) on Interchange Fees and took part in a follow up meeting. AFP, Association for Financial Professionals and the AFP logo are registered trademarks of the Association for Financial Professionals.

5. AFP Advocacy – Our Successes (cont’d) • Some Major Accomplishments during the 111th Congress: • AFP GRC members met with the Department of Justice on Interchange Fees. • AFP GRC members have played a key role in formulating derivatives policy in recent legislative efforts in both the House and Senate. • AFP GRC members met with SEC senior staff to discuss derivatives reform, credit rating agency reform and money market 2a7 rules. Our position and suggestions were included in several final proposed and interim rules. AFP, Association for Financial Professionals and the AFP logo are registered trademarks of the Association for Financial Professionals.

6. AFP Advocacy in the 112th Congress • AFP began action early in the 112th Congress : • AFP sent a letter to all Members of Congress on the first full day of legislative business encouraging action on repatriation of offshore balances. • AFP GRC members met with senior staff at the SEC and Federal Reserve to discuss reforms to money market 2a7 rules. • AFP GRC members also met with senior staff on the House Financial Services and Senate Banking Committees to discuss preservation of the end user exemption protection included in the OTC derivatives reform section of Dodd Frank. • AFP staff and GRC members conducted over 35 freshmen visits with newly elected Representatives and Senators introducing and their staff to AFP. AFP, Association for Financial Professionals and the AFP logo are registered trademarks of the Association for Financial Professionals.

7. The New Regulatory Regime – Dodd-Frank • The main aspects of regulatory reform include: • Systemic Risk Regulation/Mitigation • Hedge Fund Regulation • Consumer Financial Protection • National Insurance Regulation • Derivatives Regulation • “The Volker Rule” AFP, Association for Financial Professionals and the AFP logo are registered trademarks of the Association for Financial Professionals.

8. Dodd-Frank: Major Details • AFP is focusing on a few key aspects of regulatory reform: • Derivatives Regulation • Credit Rating Agency Reform • Financial Accounting & Reporting • Payments Regulation AFP, Association for Financial Professionals and the AFP logo are registered trademarks of the Association for Financial Professionals.

9. 2010 Midterm Elections • Seismic shift in power nationally. • GOP picked up 63 seats in the House (242 R/193 D) • 53 incumbents lost their seats. • 3 Committee Chairmen were defeated. • 16 Members of the HFSC did not return for the 112th Congress • Senate remains in Democratic control w/ a smaller majority – GOP picked up 5 seats (53 D/47R) • 5 Senators on SBAN did not return for the next Congress (Chairman Dodd retired). AFP, Association for Financial Professionals and the AFP logo are registered trademarks of the Association for Financial Professionals.

10. 2010 Midterm Elections (cont’d) • 10 new Republican Governors were elected (most notably Ohio & Florida) (29R/20D/1I) • 19 State Legislatures shifted from Democrat to Republican • In the House, over ½ of the Blue Dog Caucus (fiscally conservative Democrats) lost their seats. • The House began the session with the intention of tackling jobs & the economy but not likely to broadly reopen Dodd-Frank. • Members will address Fannie & Freddie and tighten definitions around systemic risk, several technical corrections to Dodd-Frank, interchange fees & OTC derivatives & possibly rating agencies. AFP, Association for Financial Professionals and the AFP logo are registered trademarks of the Association for Financial Professionals.

11. AFP’s 2011 Legislative & Regulatory Priorities • Money Market Fund Reform • Repatriation of Offshore Balances • Interchange Fees • Rating Agencies AFP, Association for Financial Professionals and the AFP logo are registered trademarks of the Association for Financial Professionals.

12. Get Involved • Feel free to contact AFP’s Staff with your input • We are YOUR advocate in Washington, DC • Jeanine Arnett, Director, Government Relations & Public Policy • jarnett@afponline.org www.afponline.org AFP, Association for Financial Professionals and the AFP logo are registered trademarks of the Association for Financial Professionals.

13. AFP Annual Conference 2011 AFP is pleased to announce that President Bill Clinton, 42nd President of the United States, will be the opening general session speaker at our Annual Conference in Boston, November 6-9, 2011.