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
Banking
- FRB:
- Released the Senior Loan Officer Opinion Survey on Bank Lending Practices for the past three months
- 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
- SEC:
- Named a new Senior Policy Advisor for Climate and ESG
- Released a joint statement on the recent market volatility; related CFTC statement; announced hearings in House and Senate committees
- Requested comment on potential money market fund reform options
- FINRA:
- Published the 2021 report on its examination and risk monitoring program
- Released new research on the surge of retail investors in 2020
- Modified its TRACE dissemination protocols for specified pool transactions
Other
- SBA and Treasury:
- Released updated PPP FAQs related to BSA compliance
- FTC:
- Provided the CFPB with annual summary of ECOA enforcement activities
- Announced it received more than 2.1 million consumer fraud reports in 2020
- NYFRB:
- Released the annual small business credit survey
- Launched a prequalification process for corporate bond and ETF investment management services for the SMCFF
- Selected additional firms to broaden its counterparty base for agency CMBS and the CPFF
- NYDFS:
- Issued a new Cyber Insurance Risk Framework
- BIS:
- Published a Financial Stability Institute paper on Fintech regulation: how to achieve a level playing field
Industry news headlines
(Some links may require subscription)
- Regulators Say Market Infrastructure Was Resilient in GameStop Frenzy (WSJ)
- SEC to Review Brokers’ Restrictions on GameStop, AMC Trading (WSJ)
- Risky Borrowers Hope to Boost Green Credentials (WSJ)
- Don’t Bank on Covid-19 Killing Off Cash Just Yet (WSJ)
- Cannabis stocks rally after Chuck Schumer leads drive for reforms that may end federal prohibition (MarketWatch)
- Acting CFPB chief signals tougher stance against redlining (American Banker)
- Fast-tracked PPP forgiveness provided unexpected earnings lift (American Banker)
- U.S. PPP Loans Reach $72.7 Billion in New Round With Big Lenders (Bloomberg)
