Washington Report 360 | January 25, 2019

In this issue....

Key highlights

  • The Chair of the House Financial Services Committee is seeking information from trade associations and credit reporting agencies on efforts to help consumers affected by the government shutdown.
  • FINRA issued its 2019 Risk Monitoring and Examination Priorities.
  • U.S. banks reported a record number of suspected cases of elder financial exploitation in 2018.

Financial services legislative and regulatory news

The House Financial Services Committee Chair has requested the financial services industry trade associations and the largest credit reporting agencies provide the Committee with explanation of the accommodations they are providing individuals affected by the government shutdown.

The Ranking Member of the House Financial Services Committee has provided recommendations to the Chair for upcoming hearings, including the potential impact of Brexit, cybersecurity preparedness, anti-money laundering regulations, the conservatorship of Fannie Mae and Freddie Mac, the Current Expected Credit Loss standard, and fintech regulation. (American Banker, WSJ)

FINRA released its 2019 Risk Monitoring and Examination Priorities Letter, highlighting “materially new priorities,” including online distribution platforms, fixed income mark-up disclosure, and regulation technology.

The Nevada Securities Division issued proposed regulations that would impose a fiduciary duty on investment advisers and broker-dealers.

The CFTC is expected to withdraw an existing proposed rule on swap trading and to rewrite and reissue the proposal after obtaining industry comment. (WSJ)

Three major topics were highlighted during the 2019 World Economic Forum in Davos, including emerging technologies, cyber risks, and geopolitical risks; digital transformation is at the top of many firms’ agendas though many firms are challenged by public policies that lag behind the new technologies. (KPMG)

Financial services policy news

U.S. banks reported a record number of suspected cases of elder financial abuse to the U.S. Treasury in 2018; the 24,454 reported cases represent a 12 percent increase over 2017 reported cases and more than double the cases reported in 2013. (WSJ)

The Acting Director of the Federal Housing Finance Agency (FHFA has supervisory and regulatory authority over Fannie Mae, Freddie Mac, and the Federal Home Loan Banks) filed a motion in a U.S. Court of Appeals indicating the agency will no longer defend the constitutionality of its single-director leadership structure.  (American Banker)

The BIS released a report by the Committee on the Global Financial System outlining policies to support the development of robust and efficient capital markets.