As some folks have indicated in the thread we did recently post more specifics on exactly what this will look like when it goes live. Here are links to three of Amber's posts on the topic from yesterday:
Hope that helps!
Though I follow the Dev Tracker and so have picked this up, I think this is significant enough that I'm surprised that the fact that you will LOSE commendations has not be published on the launcher. I know a number of people who don't make a habit of reading the forums, which from what I've seen before posted from Bioware people, does include a substantial amount of the player base.
These caps need to be put in a Blog post and added to the Launcher BEFORE people lose their items.