Key Highlights
- Federal banking agencies decided not to extend temporary capital relief for BHCs and institutions subject to the Supplementary Leverage Ratio.
- FINRA outlined firm obligations during extreme market volatility, including customer order handling, margin requirements, and liquidity management.
- SEC requested public input on climate-related disclosures.
- SEC is also working on disclosures for how funds vote their shareholders’ proxies, including updates to Form N-PX (used by funds to disclose proxy votes and procedures) and consideration of disclosing certain Form N-PX on a website to increase transparency.
- CFTC created a new Climate Risk Unit, which will focus on the role of derivatives in understanding, pricing, and addressing climate-related risk; the CFTC’s action follows the recently created FRB Supervision Climate Committee and SEC Climate and ESG Task Force.
- NY DFS announced expectations to increase diversity, equity, and inclusion within NY insurance companies including setting board and senior management diversity as a strategic priority, collecting and publicizing diversity data, and incorporating a review of diversity efforts into the examination process.
Financial services regulatory and policy news
Banking
- Federal banking agencies (FRB, OCC, FDIC):
- Announced that temporary changes to the Supplementary Leverage Ratio (SLR) for depository institutions will expire March 31
- FRB:
- Announced that temporary changes to the SLR for BHCs will expire March 31
- Provided closing remarks at a CPMI conference on cross border payments
- FDIC:
- Announced a public webinar series on leveraging big data for the banking industry
- Encouraged banks to submit voluntary self-assessments of their diversity policies and practices
- CFPB:
- Encouraged banks and debt collectors to allow stimulus payments to reach consumers
Capital Markets
- SEC:
- Requested input from investors, registrants, and other market participants on climate change disclosure
- Spoke about meeting investor demand for climate and ESG information, including detailed actions
- Spoke about fund voting and disclosure and outlined efforts to update disclosure requirements
- CFTC:
- Established a new Climate Risk Unit
- FINRA:
- Outlined firm obligations during extreme market volatility
- Proposed amendments to the margin rule
- Proposed a rule change to extend the pilot program related to Clearly Erroneous Transactions in Exchange-listed Securities
Other
- Senate:
- Confirmed Isabella Guzman as SBA Administrator
- Banking Committee conducted a hearing on financial system risks associated with climate change
- House:
- Passed the PPP Extension Act, which would extend the PPP application deadline to May 31; the bill now moves to the Senate
- FS Committee conducted a hearing on using diversity data to measure diversity, equity, and inclusion commitment
- Judiciary Committee conducted a hearing on strengthening the laws to address monopoly power; FTC Acting Chair testified
- SBA:
- Extended the deferment period for all COVID-19 EIDL and other disaster loans
- Updated, with Treasury, PPP forms and FAQs
- Treasury:
- Disbursed 90 million economic payments from the American Rescue Plan
- NY FRB:
- Announced it will cease regular operations to purchase Agency CMBS
- BIS:
- Issued a brief on regulatory approaches and policy options for big tech in finance
- Department of Education:
- Announced actions to streamline the borrower defense relief process; the change is expected to help 72,000 student loan borrowers receive full relief
Insurance
- NAIC:
- Sought public comment on three fiscal impacts statements related to its 2021 budget
- NYDFS:
- Announced new actions to promote diversity, equity, and inclusion in the insurance industry
Industry news headlines
(Some links may require subscription)
- Powell Says COVID-19 Highlights Need to Improve Cross-Border Payments (WSJ)
- CFTC Creates Climate Risk Unit to Review Futures, Options (WSJ)
- Biden Administration to cancel $1 billion in student loan debt held by scammed borrowers (Market Watch)
- Redlined US homes face higher flood risks from climate change, new study finds (CNN)
- Sherrod Brown quickly shifts Senate Banking panel's course (American Banker)
- Sign of fintech’s evolution: Two new DC trade groups (American Banker)
