Washington Report 360 | February 15, 2019

In this issue....

Key highlights

  • The CFTC published its 2019 examination priorities.
  • The Senate Banking Committee is seeking public input on data privacy.

Financial services legislative and regulatory news

The CFTC published 2019 examination priorities for its three Divisions, including a focus on cryptocurrencies, trade surveillance, non-cash margin, and segregation of customer funds; examinations of derivatives clearing organizations will be tailored to each DCO and the products it clears.

The federal banking agencies, the NCUA, and the Farm Credit Administration have adopted final rules implementing the private flood insurance provisions of the Biggert-Waters Flood Insurance Reform Act.

The Federal Reserve and the FDIC issued an advisory on voluntary private education loan rehabilitation programs that financial institutions may offer pursuant to Section 602 of EGRRCPA.

The CFPB highlighted new consumer protections for military consumers that go into effect in May 2019, including credit reporting for certain medical debts and free electronic credit monitoring.

The Senate Banking Committee requested public comment on the collection, use, and protection of consumers’ personally identifiable and other sensitive information by financial regulators and private financial companies.

A House Financial Services Subcommittee heard testimony on cannabis-related businesses’ access to banking services.

The Office of Financial Research adopted final rules requiring certain centrally cleared repo transactions to be reported; the data will support the FRBNY’s calculation of reference rates, including SOFR, an alternative to LIBOR.

Financial services policy news

  • Released a FinTech report suggesting new entrants, particularly “BigTech” firms, could “materially alter the universe of financial services providers.”
  • Outlined guiding principles for 2019, including outreach / transparency, review of the vulnerabilities assessment framework, and ongoing critical analysis of post-crisis reforms.

The President signed an Executive Order calling on federal agencies and industries to prioritize Artificial Intelligence-related research and development while maintaining “safety, security, privacy, and confidentiality protections;” the order anticipates future AI regulatory guidelines.

The Federal Reserve Bank of New York released its Quarterly Report on Household Debt and Credit, revealing record originations and increasing delinquencies among auto loans and a “modest” increase in total household debt.

The CFPB published its Semi-Annual Report to Congress covering April through September 2018.

The Conference of State Bank Supervisors agreed to implement 14 specific recommendations from its FinTech Advisory Panel generally aimed at standardizing licensing and supervisory processes.

The Department of Education’s Inspector General’s report indicated weaknesses in reasonably assessing federal student loan servicer noncompliance, including not holding certain servicers accountable for noncompliance.