Key Highlights
- OCC created a new Climate Change Risk Officer position that will report to the Senior Deputy Comptroller for Supervision Risk and Analysis. OCC states the move “will enable the agency to be more proactive in accelerating the development and adoption of robust climate change risk management practices, especially at the larger banks.”
- SEC staff developing a mandatory climate risk disclosure rule proposal for consideration by the SEC Commission by year end; SEC Chair suggests that investors will benefit from consistency and comparability when disclosures are mandatory. Both quantitative and qualitative disclosures are being considered.
- FINRA is preparing to conduct targeted sweeps of certain activities including option account opening compliance and firms’ oversight and communications related to paid social media influencers, which FINRA calls “finfluencers.”
- The Administration asked Congress to extend the federal eviction moratorium imposed earlier this year by the CDC regarding tenants unable to make their rental payments due to economic hardships of COVID-19; the House FS Committee has introduced legislation that would extend the moratorium through year-end.
Financial services regulatory and policy news
Banking
- Federal banking agencies (FRB, OCC, FDIC):
- Each published FAQs regarding impacts to regulatory capital instruments as a result of the LIBOR transition (here, here, and here)
- OCC:
- Announced the creation of a new Climate Change Risk Officer position and membership in the Network of Central Banks and Supervisors for Greening the Financial System (NGFS)
- CFPB:
- Published an issue brief showing that credit applications have “mostly recovered” to pre-pandemic levels
- Released an online tool to help renters and landlords access federal assistance
- Published, with FHFA, updated data from the National Survey of Mortgage Originations
Capital Markets
- SEC:
- Spoke about climate risk and the global financial markets
- Issued a substituted compliance determination order for security-based swap entities subject to French regulation; this is the first substituted compliance determination in connection with SEC capital and margin requirements
- Issued Risk Alerts highlighting observations from investment adviser examinations related to:
- Fixed income principal and cross trades
- Client accounts that participate in wrap fee programs
Other
- NYFRB:
- ARRC formally recommends SOFR term rates
- SBA:
- Opened a direct portal for PPP borrowers with loans of $150,000 or less
- FHFA:
- Announced multifamily tenant protections, requiring 30-days’ notice before tenant is required to vacate
- FTC:
- Hosted PrivacyCon 2021
- Provided testimony before Congress noting a range of challenges from “COVID fraud to anticompetitive conduct”
- NYDFS:
- Distributed an Industry Letter outlining expectations for New York-regulated banking institutions and non-depository financial institutions to make diversity of their boards and senior management a business and corporate governance priority
- Released a report on New York State insurers’ management of financial risks from climate change (also noted below under NAIC)
- BIS:
- Published a “blueprint” proposal for enhancing global real-time payments network connectivity
Insurance
- NAIC:
- Released a report on New York State insurers’ management of financial risks from climate change based on responses to a 2020 NAIC survey and TCFD reports
Industry news headlines
(Some links may require subscription)
- Biden asks Congress to Extend Federal Eviction Moratorium (WSJ)
- FINRA chief says new exam sweeps are on the way (ThinkAdvisor)
- FICO Score's Hold on the Credit Market is Slipping (WSJ)
- Will states lead the way on expanding CRA to nonbanks (American Banker)
- U.S. Leveraged Loans Are Seen Ditching Libor Within Weeks (Bloomberg)
