Washington Report 360 | October 18, 2019

Key highlights

• The FRB, OCC, FDIC, and NCUA proposed an interagency policy statement on the FASB’s current expected credit loss (CECL) methodology; CECL is effective for most public financial institutions beginning in 2020 though FASB deferred the effective date for all other institutions to 2023.
• The evolution of digital assets, including stablecoins, as well as the related risks and regulatory authorities were highlighted in an FRB speech and interagency notice. 

Financial services regulatory and policy news

Banking

• Four agencies proposed an interagency policy on allowances for credit losses and interagency guidance on credit risk review systems 
  FRB, OCC, FDIC, NCUA, October 17, 2019
• FRB governor addressed digital currencies, stablecoins, and payments innovation
  FRB, October July 30, 2019
• FDIC approved final tailoring rules and resolution planning requirements
  FDIC, October 15, 2019
• CFPB report | 2019 report of private education loan ombudsman
  CFPB, October 15, 2019
• CFPB formed a taskforce to identify improvements to existing consumer financial laws as well as gaps and potential conflicts within existing guidance and regulations
  CFPB, October 11, 2019
• CFPB blog post explains impact of LIBOR transition on adjustable-rate credit
  CFPB, October 17, 2019

Capital Markets

• Agencies issued joint statement on digital assets-related activities and responsibilities
  CFTC, SEC, FinCEN, October 11, 2019
• CFTC proposed two rules amending the margin rules for uncleared swaps
  CFTC, October 16, 2019
• SEC requested proposals on market structure innovations for thinly traded securities
  SEC, October 16, 2019
• FINRA report | 2019 Examination findings and observations
  FINRA, October 16, 2019
  

Insurance

• FRB announced inaugural members of the Insurance Policy Advisory Committee
  FRB, October 16, 2019

Other

• FASB approves CECL delay for most lenders
  FASB, October 16, 2019
• California attorney general released proposed regulations for the CCPA - California's privacy law
  State of California, Department of Justice, October 10, 2019
• California governor signs bills amending CCPA
  State of California, Office of the Governor, October 11, 2019
• FSB report | Implementation and effect of financial regulatory reforms 
  FSB, October 16, 2019
• FSB report | OTC derivatives reform
  FSB, October 15, 2019
• Committee issued staff report on CFPB 
  House Financial Services Committee, October 16, 2019
• House passed bill requiring SEC to test market Regulation Best Interest disclosures
  House of Representative, October 17, 2019

Industry news

• U.K., EU Agree on Draft Brexit Deal, Paving Way for Key Vote
  WSJ, October 17, 2019
• China further opens banking and insurance sectors to foreign companies
  MarketWatch, October 16, 2019
• IMF heightens warnings on corporate debt following central banks’ interest rate cuts
  Reuters, October 16, 2019
• Vaping deaths could slow pot banking momentum
  American Banker, October 17, 2019