Washington Report 360 | August 16, 2019

Final revisions to the Volcker Rule; FRB considering imposing Countercyclical Capital Buffer; Recent attention to diversity.

Key highlights

  • An SEC Risk Alert highlights compliance issues observed during examinations of investment advisers that employ individuals with disciplinary events.
  • New York State Governor signs the SHIELD Act, which expands data breach notification requirements.
  • Market participants are reviewing FTC privacy enforcement requirements, including the creation of a board-level privacy committee, designation of privacy compliance officers, and certification by the CEO.
  • The Antitrust Division of the Department of Justice has announced it is reviewing whether “market-leading online platforms” are engaging in practices that may have “reduced competition, stifled innovation, and otherwise harmed consumers.”
  • Five regulatory agencies (FRB, OCC, FDIC, SEC, and CFTC) are expected to release final revisions to the Volcker Rule as early as next week. The revisions reportedly include a new definition of “proprietary trading” and revisions that include loosened restrictions on banks investing their own money in private equity and hedge funds.
  • FRB is considering imposing the Countercyclical Capital Buffer to increase capital requirements for large banking organizations as an offset to potential losses from elevated risk; the buffer would be reduced when economic conditions deteriorate to support lending and broader economic activity.
  • Recent attention to diversity, including a Congressional data study at megabanks, a FRBNY report finding disparities in small business credit, and a NCUA focus on minority depository institutions.

Financial services regulatory and policy news


Capital markets


Industry news