- The Federal Reserve released a proposal to simplify its rules for determining control of a banking organization.
- The CFPB announced changes to its Civil Investigative Demands (CID) policy to provide more information about the provisions of law that may have been violated and the business activities subject to the Bureau’s authority.
Financial services legislative and regulatory news
The Federal Reserve released a proposal to simplify its rules for determining control of a banking organization based on multiple factors and thresholds.
The CFTC approved:
- Announced the formation of an Office of Financial Innovation.
- Amended FINRA Rule 4570, Custodian of Books and Records, to allow a firm to designate a member firm as custodian and to clarify the designated custodian’s obligations.
- Issued a Regulatory Notice to consolidate published criteria, without change, for designating firms for mandatory participation in business continuity/disaster recover testing.
Upcoming hearings next week:
- The Senate Banking Committee will conduct a hearing on “Guidance, Supervisory Expectations, and the Rule of Law”
- The House Financial Services Committee will conduct hearings on “Housing in America,” “Ending Debt Traps in the Payday and Small Dollar Credit Industry,” “Examining Discrimination in the Automobile Loan and Insurance Industries,” and “A Review of the Business Case for Diversity and Inclusion.”
Continued California state activity in consumer data privacy.
Financial services policy news
The CFPB announced changes to its Civil Investigative Demands (CID) policy to provide more information about the provisions of law that may have been violated and the business activities subject to the Bureau’s authority.
- Sponsored a conference on “Fintech and the Future of Banking” where i) the FDIC Chair and OCC Comptroller agreed that fintechs have struggled to meet capital and profitability requirements for a bank charter, and ii) the FDIC said it had begun studying data aggregation and data sharing between banks and third parties, including fintech vendors. (American Banker)
- Is seeking individuals qualified to serve as directors or executives of banks that fail at some point in the future. (WSJ)