- Certain COVID-19-related regulatory relief was extended, including the banking agencies’ rules for CECL, eligible retained income, and the CBLR, and FHFA’s moratoriums on foreclosures and provisions for purchases of loans in foreclosure.
- SEC adopted principled-based disclosure requirements (Regulation S-K) focusing on ESG issues of human capital measures and environmental risks.
- SEC modified the definition of accredited investor, expanding the number of individual investors eligible to participate in the private capital markets.
- SBA and Treasury continue to provide guidance on the PPP loan forgiveness
Financial services regulatory and policy news
- Federal banking agencies (FRB, OCC, FDIC):
- Finalized a rule providing an option to delay recognizing CECL effects in regulatory capital
- Finalized an interim final rule revising the definition of “eligible retained income”
- Finalized two interim final rules revising the community bank leverage ratio framework
- Issued a statement clarifying BSA due diligence requirements for “politically exposed persons”
- Outlined COVID-19 impacts on the economy and banking industry, including smaller banks
- Released the second 2020 Quarterly Banking Profile showing a 70% decrease in net income year over year and strong liquidity and capital levels
- Proposed a new policy statement encouraging and preserving Minority Depository Institutions; related remarks are here
- Proposed changes to its supervisory appeals process
- SBA and Treasury:
- Issued an interim final rule addressing PPP forgiveness for owner-employee compensation
- FHFA (as regulator for Fannie Mae and Freddie Mac):
- Released a report on homelessness and HUD data collection efforts
- Published a Key Attributes Assessment Methodology for assessing a jurisdiction’s insurance resolution framework
- Updated recommended fallback language for bilateral business loans and provided technical information for syndicated loan conventions