Key Highlights
- The FRB, OCC, and FDIC outlined guidance to be released in 2022 on permissible activities and prudential risk management related to “crypto assets” and activities. OCC said it will require banking organizations to receive agency approval before engaging in cryptocurrency activities. (See KPMG Regulatory Alert)
- The Basel Committee proposed 18 principles for financial institutions and supervisors to improve management of climate-related financial risks. (See KPMG Regulatory Alert)
- The federal banking agencies will require supervised banking organizations to provide notification within 36 hours for cyber incidents that meet their definition of a “computer-security incident.” (See KPMG Regulatory Alert)
- CFPB issued a public statement confirming it will prioritize examinations of banks that are heavily reliant on overdraft fees, take action against large institutions whose overdraft practices violate the law, and consider additional policy guidance outlining unlawful practices.
- The Senate confirmed the Treasury undersecretary for terrorism and financial crime; it is expected that this confirmation will continue the renewed focus on FinCEN and AML rules.
Financial services regulatory and policy news
Banking
- Federal Agencies (FRB, OCC, FDIC):
- Finalized computer-security incident notification requirements
- Issued a joint statement on crypto-assets; Related CFTC statement
- Through the FFIEC, released updates to the BSA/AML Examination Manual
- FRB:
- Released Supervision and Regulation Report
- Spoke about economic inclusion of indigenous people
- NYFRB - launched an innovation center to support fintech innovation in central banking
- OCC:
- Clarified bank authority to engage in cryptocurrency activities
- Issued a bulletin on equity investments in venture capital funds
- Solicited research papers on climate risk in banking and finance
- CFPB:
- Released two data point reports covering overdraft fees; Related statement
- With FRB, announced adjustments to dollar thresholds in Regs Z and M
- With FRB and OCC, announced thresholds for small loan exemptions to appraisal requirements
Capital Markets
- SEC:
- Finalized rules implementing submission and disclosure requirements in the Holding Foreign Companies Accountable Act; Related statement
- Spoke on:
- Amendments to modernize how broker-dealers preserve electronic records
- Investor protections , disclosures, and crypto markets
- CFTC:
- Adopted technical amendments to rules governing reparations proceedings
- Announced the deadline to switch interdealer trading conventions from LIBOR to SOFR
- FINRA:
- Released a podcast on its market surveillance program
Other
- Senate Banking Committee:
- Conducted a hearing on the oversight of the CARES Act; Related statements here and here
- House FS Committee:
- Conducted a hearing on the oversight of the CARES Act;
- Urged regulators to ensure bias doesn’t occur in emerging technology
- FHFA:
- Announced the 2022 conforming loan limits for agency-acquired mortgages
- FSB:
- Urged preparedness for LIBOR cessation
- Discussed high debt levels and crypto asset risks
- BIS:
- BCBS proposed guiding principles for management and supervision of climate-related financial risks
- BCBS published additional information related to its assessment of G-SIBs
- CPMI solicited comments on payment systems and enhancements to cross-border payments
- CPMI and IOSCO solicited comments on access to central clearing and portability
Industry news headlines
(Some links may require subscription)
- Senate Confirms Biden Nominee for U.S. Sanctions Chief (WSJ)
- Financial services companies can address historical inequities and earn consumer loyalty (American Banker)
- What’s in the Roughly $2 Trillion Build Back Better Bill (WSJ)
- Life Insurers Use Riskier Assets to Back Consumers’ Policies (WSJ)
- Investors, Financials Join New Coalition to Launch Free Central ESG Data Source (ESG Today)
- Senators pressed to include cannabis banking in military spending bill (American Banker)
