Washington Report 360 | May 10, 2019
Washington Report 360 | May 10, 2019
Insight

Washington Report 360 | May 10, 2019

Fair Debt Collection Practices; structure of the CFPB ruled constitutional; CFTC Enforcement Manual; cross-border swaps transactions

Key highlights

  • The CFPB proposed rules to implement the Fair Debt Collection Practices Act, including clarifying the permissibility of email and text message communications.
  • A U.S. Court of Appeals ruled the single-director structure of the CFPB to be constitutional.
  • The CFTC Division of Enforcement released its first publicly available Enforcement Manual.
  • The SEC published proposed rules addressing the regulatory framework for cross-border security-based swaps transactions and market participants.

Financial services legislative and regulatory news

The CFPB:

  • Proposed rules to implement the Fair Debt Collection Practices Act (FDCPA), including clarifying the permissibility of email and text message communications; the Director provided remarks at a Town Hall meeting.
  • Released a report on Elder Fraud Prevention and Response Networks, CFPB-initiated collaborations between local and state authorities and private organizations to protect elders.
  • Released an Identity Theft Protection Guide for consumers.

The Federal Reserve:

  • Requested comment on possible modifications to the Federal Reserve Banks’ National Settlement Service and Fedwire Funds Service related to the same-day automated clearinghouse service; comment is also requested on the Policy for Payment System Risk.
  • Published the second Financial Stability Report, highlighting vulnerabilities related to asset valuations and leveraged lending.
  • Published its Senior Loan Survey on Bank Leading Practices for the first quarter of 2019.
  • Hosted the biennial Community Development Research conference.

The SEC:

  • Proposed multiple rules and interpretive guidance to amend the regulatory framework for cross-border security-based swaps transactions and market participants.
  • Proposed to amend the definitions of “accelerated filer” and “large accelerated filer” to exclude smaller reporting companies with less than $100 million in annual revenues as well as to increase the relevant transition thresholds; one commissioner dissented.

FINRA provided guidance on suspicious activity monitoring and reporting obligations, including potential “red flags.”

The U.S. Court of Appeals for the Ninth Circuit has ruled the single-director structure of the CFPB is not unconstitutional. (bloomberglaw)

The House Financial Services Committee passed five bills and two resolutions.  The resolutions established two new Committee task forces covering Financial Technology and Artificial Intelligence.

The federal banking regulators are considering easing collateral requirements for swaps trading with affiliates. (WSJ)

Ongoing attention to financial services and the cannabis industry, as 39 state attorneys general submit letter to congress. (Politico)

Concerns raised over cross-selling and fees tied to retirement fund accounts. (WSJ)

A credit rating agency states that lapses in anti-money laundering and financial crimes controls are more likely to affect a banks’ credit rating than most other nonfinancial factors. (WSJ)

Financial services policy news

The CFTC Division of Enforcement released its first publicly available Enforcement Manual.

The Education and Industry Forum on Financial Services Culture, sponsored by the Federal Reserve Bank of New York, conducted its first meeting.