Insight

Washington Report 360 | March 26, 2021

FRB activities related to BHCs, climate, and LIBOR; Congress extended PPP through June; UDAAP/#UDAP and debt collection highlighted by CFPB; NY DFS climate-related guidance to insurance companies

Amy S. Matsuo

Amy S. Matsuo

ESG and Regulatory Insights Lead, KPMG LLP

Key Highlights

  • The FRB announced that temporary and other restrictions on BHC dividends and share repurchases will end after June 30, 2021 for firms with capital levels above those required by the current round of stress tests.
  • The FRB formed a new group to analyze climate-related risks from a macroprudential perspective; the group will complement the Supervision Climate Committee, which will focus on microprudential issues. The FRB Chair testified the FRB is in the early stages of understanding the risks to regulated financial institutions from climate change.
  • The FRB stated that industry participants should expect panel-based USD LIBOR to not continue past June 2023 but reiterated that use of LIBOR in new contracts should not continue after 2021.
  • Congress approved legislation to extend the PPP through June 30, 2021; applications will be accepted through May 31, 2021 and processing will continue for the following 30 days.
  • UDAAP/UDAP and debt collection are highlighted by CFPB and FTC; FTC formed a new group within its Office of General Counsel to focus on UDAP.
  • The NY DFS proposed guidance for insurance companies on managing financial risks of climate change

Financial services regulatory and policy news

Banking

Capital Markets

  • SEC:
  • Spoke about ESG disclosure and regulation (here and here) at the Asset Management Advisory Committee meeting
  • FINRA:
  • Released a podcast reviewing the exam and risk monitoring program in 2020
  • Issued a research report on older adults and decision making risks

Other

Insurance

  • NY DFS:
  • Proposed guidance to insurers on managing financial risks from climate change

Industry news headlines
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