The next Washington Report 360 will be released on January 8, 2020. Wishing everyone a Happy Holiday season!
Key Highlights
- SEC charged a trading platform for misleading customers about the quality of their order execution and with failing to satisfy its duty of best execution; the Commonwealth of Massachusetts separately charged the company with violating the state’s fiduciary conduct rule and operating without regard to customers’ best interest.
- FDIC finalized rules setting requirements for parent companies of industrial banks and ILCs that are not subject to consolidation by the FRB.
- FDIC finalized rules establishing a new framework for assessing brokered deposits; OCC stated the new framework would promote innovation and relationships between traditional banks and fintech firms.
- DOL finalized a rule for ERISA plan fiduciaries to not exercise proxy voting decisions and other shareholder rights for “non-pecuniary” objectives or goals. This final rule follows the DOL’s recent amendments to the investment’s duties rule. Both DOL actions are being met by swift political and industry response.
Financial services regulatory and policy news
Banking
- Federal banking agencies (FRB, OCC, FDIC):
- Announced a proposed rule requiring prompt notification of a significant computer security incident
- Issued a statement on the treatment of certain legacy swaps affected by Brexit and the swap margin rule
- Released 2019 data on small business, small farm, and community development lending
- Released annual CRA asset-size threshold adjustments for small and intermediate small institutions
- FRB:
- Spoke about the need for changes to the supervisory ratings framework
- Joined the Network of Central Banks and Supervisors for Greening the Financial System, a global coalition focused on managing climate risk to the financial sector
- FDIC:
- Approved:
- A final rule on brokered deposit and interest rate restrictions; OCC related statement
- A final rule imposing conditions on parent companies of industrial banks and ILCs
- A proposed rule that would amend its suspicious activity report requirements; An OCC proposal would exempt certain entities from SARs reporting
- Released its 2020 Community Bank Study
- Spoke about improving and modernizing bank supervision
- Approved:
- CFPB:
- Released the Small Business Panel report on its proposals for small business lending data collection
- Released the Quarterly Consumer Credit Trends report
Capital Markets
- SEC:
- Adopted final rules:
- For the disclosure of payments by resource extraction issuers
- To limit overlapping/duplicative regulations within its security-based swap regime
- Announced observations of potential noncompliance of Large Trader obligations
- Charged a trading platform for misleading customers and failing to satisfy duty of best execution; Related action by the Commonwealth of Massachusetts
- Adopted final rules:
- CFTC:
- Released a Digital Assets Primer on emerging concepts in digital assets
- Participated in “Operation Income Illusion,” a crackdown on retail customer scams
- FINRA:
- Proposed a rule that would amend its BrokerCheck Disclosure
- Sought comment on lessons learned from the COVID-19 pandemic
Other
- DOL:
- Finalized a rule on proxy voting and shareholder rights by employee benefit plans
- Finalized a class action exemption for retirement account fiduciaries
- FHFA:
- Sought comment on an NPR regarding liquidity requirements for Fannie Mae and Freddie Mac
- Released reports on single-family guarantee fees and the sale of non-performing loans by the Fannie Mae and Freddie Mac
- Announced its 2021 affordable housing goals for the Enterprises
- Released its Q3 2020 Foreclosure Prevention and Refinance Report
- FSB:
