Washington Report 360 | July 26, 2019

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.”

Financial services legislative and regulatory news

Banking

• Federal bank regulatory agencies and FinCEN improve transparency of risk-focused BSA/AML supervision - Interagency Statement
  FRB, OCC, FDIC, NCUA, FinCEN, July 22, 2019
• Agencies Release Public Sections of Resolution Plans for Eight Large Banks
  FRB, FDIC, July 23, 2019
• OCC Bulletin: Lending Standards for Asset Dissipation Underwriting
  OCC, July 23, 2019
• Fraud Risk Management Principles – Bulletin 2019-37
  OCC, July 24, 2019
• Statement Regarding Insurance Policies for Directors and Officers - SR 19-12
  FRB, July 23, 2019
• Who Owns U.S. CLO Securities? FRB Economic Research, FED Notes re: leveraged lending
  FRB, July 19, 2019

Consumer

• CFPB releases Qualified Mortgage ANPR re: Fannie, Freddie exemption
  CFPB, July 25, 2019
• CFPB Report: Building a bridge to credit visibility - 2018 credit visibility symposium
  CFPB, July 19, 2019

Capital Markets

• SEC OCIE Risk Alert:  Observations from Examinations of Investment Advisers under the "Supervision Initiative"
  SEC, July 23, 2019
• CFTC Staff and FinCEN Clarify the Customer Identification Program and Beneficial Ownership Obligations of Certain Introducing Brokers
  CFTC, FinCEN, July 15, 2019

Other

• New York State Governor signs SHIELD Act, expanding data breach notifications
  New York State, July 25, 2019
• NY DFS Superintendent announces new research and innovation division
  New York State, Department of Financial Services, July 23, 2019
• GAO Report | Education Needs to Verify Borrowers' Information for Income-Driven Repayment Plans
  GAO-19-347, Publicly Released July 25, 2019
• GAO Report | Agencies Should Provide Clarification on Lenders' Use of Alternative Data
  GAO-19-694T, Publicly Released July 25, 2019
• Basel Committee and IOSCO agree to one-year extension of the final implementation phase of the margin requirements for non centrally cleared derivatives
  BIS, July 23, 2019

In the news

• FTC Imposes $5 Billion Penalty and Sweeping New Privacy Restrictions on Facebook
  FTC, July 24, 2019
• Justice Department Reviewing the Practices of Market-Leading Online Platforms
  DOJ Antitrust Division, July 23, 2019
• Democrats try to force Fed's hand on faster payments (introduce legislation)
  American Banker, July 24, 2019
  
• U.S. Sanctions Compliance Fines Hit Decade High
  WSJ, July 25, 2019
  
• Is a hearing on pot banking as far as GOP will go?
  American Banker, July 24, 2019
• Lower Rates Crimp Value of Banks’ Mortgage-Servicing Rights
  WSJ, July 22, 2019