Washington Report 360 | February 5, 2021

Hearings on market volatility; CFPB outlined 2nd set of priorities; FINRA 2021 report; NY DFS issued a Cyber Insurance Risk Framework

Amy S. Matsuo

Amy S. Matsuo

Regulatory and ESG Insights Leader, KPMG US

+1 919-664-7100

Key Highlights

  • Following extreme market volatility in the past week, the House and Senate banking committees scheduled hearings and the SEC and CFTC are conducting reviews of market participants’ actions to assess the potential for misconduct and violations of investor protections; additional regulatory considerations may address current rules regarding short selling and pay for order flow, as well as the role of social media and oversight of new market participants.
  • CFPB Acting Director outlined a second set of immediate priorities under the new Administration, these to be carried out by its Division of Research, Markets, and Regulation, focusing on housing insecurity, racial equity, and small businesses, and highlighting the need for data collection under HMDA, CARD Act, Section 1071 (small business, women- and minority-owned businesses), and PACE.
  • FINRA published the 2021 report on its Examination and Risk Monitoring Program highlighting a focus on Regulation Best Interest, CAT reporting, cybersecurity, communications with the public, best execution, and variable annuities.
  • SEC named a new Senior Policy Advisor on Climate and ESG.
  • NY DFS issued a Cyber Insurance Risk Framework outlining best practices for NY-regulated property/casualty insurance providers offering cyber insurance; NY DFS is the first regulator to publish such guidance.

Financial services regulatory and policy news


  • FRB:
  • OCC:
    • Released the list of bank type determinations, the list of distressed and underserved areas, and the banking industry median hourly compensation value to be used by OCC-supervised institutions for purposes of CRA compliance
    • Announced it will hold virtual Innovation Office hours to promote responsible innovation in the federal banking system
  • FDIC:
    • Approved an NPR to remove or rescind certain rules, regulations, and policies related to securities offerings
  • CFPB:
    • Outlined immediate priorities for its Division of Research, Markets, and Regulation including analyses related to housing insecurity and racial equity

Capital Markets


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