Washington Report 360 | November 16, 2018
Washington Report 360 | November 16, 2018
Insight

Washington Report 360 | November 16, 2018

In this issue....

Key highlights

  • The Federal Reserve issued its first report for Supervision and Regulation, summarizing supervisory priorities and areas for upcoming horizontal examinations.
  • The Federal Reserve Vice Chairman for Supervision discussed the Fed’s proposed changes to stress testing.
  • The FSB published an IAIS consultation document on a proposed framework to assess and mitigate systemic risk in the insurance sector.

Financial services legislative and regulatory news

The Federal Reserve Vice Chairman for Supervision discussed the agency’s proposed changes to the stress testing regime, including the Stress Capital Buffer and plans for additional proposals to address volatility, risk measurement in the trading book, and transparency for scenarios; he also discussed the CCAR qualitative objection.

The FSB published an International Association of Insurance Supervisors (IAIS) consultation document on a proposed framework to assess and mitigate systemic risk in the insurance sector.

The FDIC issued a request for public comment on issues related to small-dollar lending, including how to encourage small-dollar credit offerings.

The U.S. Department of Labor proposed a rule to improve the portability of employees’ small retirement savings accounts in 401(k) plans and IRAs.

Financial services policy news

The Federal Reserve issued its first report for Supervision and Regulation, which summarized current banking conditions and regulatory and supervisory developments, including supervisory priorities and areas for upcoming horizontal reviews.

A Fed Governor discussed the impact of the growing use of artificial intelligence in financial services and said regulatory “scrutiny should be commensurate with the potential risk.” The FDIC Chair discussed the impact of FinTech on banking and the regulator’s efforts to support innovation, financial stability, and consumer protection.

The SEC issued an alert outlining its examination initiatives focused on certain mutual funds and exchange-traded funds, the activities of their advisers, and boards of directors’ oversight.

The OCC issued a Policies and Procedures Manual for enforcement actions against institution-affiliated parties.

The CFPB released its Semi-Annual Report to Congress highlighting actions taking by state attorneys general to enforce federal financial consumer law and consumer complaints received.

The FSB published progress reports on its i) recommendations to reform major interest rate benchmarks, and ii) framework and policies for resolution of SIFIs. FSB also published a consultation paper on central counterparty resolutions.