Insight
Leveraged lending focus; LIBOR transition concerns; FinCEN focus on terrorist financing; SECURE Act passed; COSO guidance on blockchain
Key Highlights
- Focus on leveraged lending will continue as highlighted by the FSB report and FDIC supervisory insights.
- Continued regulatory LIBOR transition concerns to meet the 2021 requirement (FSB report and new NY DFS requirement).
- FinCEN is expected to focus its investigative powers on terrorist financing, human trafficking, and fraud.
- The SECURE Act became law and expands access to multi-employer plans and participation for part-time employees.
- COSO will issue guidance in 2020 on internal controls for blockchain, compliance risk management principles, and risk appetite statements; COSO issued guidance for managing cyber risks in mid-December.
Financial services regulatory and policy news
Banking
- FRB issued 2019 Payments Study finding increases in card and ACH payments
FRB, December 19, 2019 - FRB approved modifications to support enhancements to same-day ACH service
FRB, December 23, 2019 - FRB examined credit offers to small businesses by online lenders
FRB, December 19, 2019 - FRB, OCC, and FDIC issued an interagency statement regarding Regulation O (loans to executive officers, directors, and principal shareholders)
FDIC, December 27, 2019 - FDIC Supervisory Insights focused on leveraged lending
FDIC, December 23, 2019 - FDIC updated its Risk Management Manual on Examination Policies to include documentation modules
FDIC, December 20, 2019 - FDIC rescinded four statements of policy
FDIC, December 31, 2019 - CFPB issued its report to Congress on TILA, EFTA, and the CARD Act
CFPB, December 18, 2019 - CFPB issued its annual report on Financial Literacy
CFPB, December 23, 2019
Capital Markets
- SEC proposed to modify auditor independence rules
SEC, December 30, 2019
Other
- The President signed the SECURE Act as part of a year-end appropriations bill
Congress.gov, December 20, 2019 - FSB report assessed vulnerabilities with leveraged loans and collateralized loan obligations
Financial Stability Board, December 19, 2019 - FSB report set out need to reduce risks to financial stability from LIBOR transition
Financial Stability Board, December 18, 2019 - NY DFS announced requirement for regulated entities to submit plans for LIBOR transition
New York Department of Financial Services, December 23, 2019 - Senate Banking Committee requested comment addressing concerns with cannabis banking legislation
Senate Banking Committee, December 18, 2019
Industry news
- Treasury’s Financial Crimes Unit ramps up foreign targeting, investigations
WSJ, December 29, 2019 - COSO to issue guidance on blockchain
WSJ, December 27, 2019 - How the Justice Department incentivizes companies to invest in compliance
WSJ, December 24, 2019 - The 2020 legislative docket: AML reform, GSEs, oversight of regulators
American Banker, January 1, 2020 - CFPB challenge is one of the 7 big Supreme Court cases to watch in 2020
The Hill, January 1, 2020 - California denies license to point-of-sale lender - expected to influence other lenders
American Banker, December 30, 2019 - Governments in Europe find workarounds to bail out ailing banks
WSJ, January 2, 2020 - CFTC case could show extent of the government’s ability to go after market manipulation
WSJ, January 3, 2020
