Key Highlights
- OCC outlined five questions it says boards of directors should be asking of senior management to prompt action related to climate change. (See KPMG Regulatory Alert)
- SEC released two Risk Alerts based on investment adviser examinations, one highlighting fee-related deficiencies and compliance disclosures, and one focused on compliance issues related to digital advisory services (robo-advisers).
- SEC Chair Gensler asked staff to consider changes to bring “greater transparency” to private fund supervision in the areas of fees, performance metrics, disclosures, and conflicts of interest.
- Five federal regulators and the CSBS issued joint guidance that makes clear the agencies will now apply their respective supervisory and enforcement authorities regarding the mortgage servicing rules to protect homeowners and address compliance failures.
- The FRB released its Fall 2021 Financial Stability Report highlighting potential shocks related cryptocurrencies and stablecoins among the top five risks after U.S./China relations, COVID variants, and inflation; additional call outs for volatility in meme stocks and LIBOR transition.
Financial services regulatory and policy news
Banking
- Federal agencies (FRB, OCC, FDIC, CFPB, NCUA, state regulators):
- Released a statement on supervisory and enforcement practices regarding mortgage servicing rules
- FRB:
- Released the Fall 2021 financial stability report
- Released the senior loan officer opinion survey on bank lending practices
- Spoke about:
- Policymaking and economic diversity
- U.S. housing and mortgage markets
- OCC:
- OCC discussed key topics related to climate change risk for boards to address
- CFPB:
- Issued an advisory opinion on name-only matching procedures by consumer credit reporting companies
Capital Markets
- SEC:
- Released Examination Risk Alerts on investment advisers’:
- Provision of electronic investment advice
- Fair and accurate charging of fees
- Spoke about:
- Fairness and inclusion in capital markets
- Private equity and hedge funds highlighting potential rulemakings on fees, performance metrics, disclosures, and conflicts of interest
- Structured data
- DeFi risks, regulations, and opportunities
Other
- House FS Committee:
- Conducted a hearing on eliminating barriers to full economic inclusion
- Treasury:
- Released, along with other FS regulators, a report on policies for bolstering the resilience of Treasury markets
- Issued implementation guidance on State Small Business Credit Initiative Program
- FinCEN:
- Released an update to its 2020 advisory on ransomware
- Convened public and private stakeholders to discuss Bank Secrecy Act SAR statistics
- NYDFS:
- Announced NY Governor signed new legislation, the Consumer Credit Fairness Act, which addresses abusive debt collection practices
- NYFRB:
- Issued a progress report evaluating disruptions and potential reforms in the U.S. Treasury market
- Released a podcast series on banking culture
- BIS:
- Announced updates to its work on climate-related financial risks, cryptoassets, G-SIB assessment methodology, and disclosure standards
- Finalized revisions to market risk disclosure requirements and voluntary disclosure of sovereign exposures
Insurance
- NAIC:
- Released its Cyber Insurance report
- IAIS:
- Published three papers in support of practical application of supervisory practices
Industry news headlines
(Some links may require subscription)
- CBO indicates lawmakers will have to wait for full score on social spending (The Hill)
- Should stablecoin issuance be confined to FDIC-insured banks? (American Banker)
- How credit unions use AI to compete with fintech lenders (American Banker)
- Widening digital divide forcing more community banks to find buyers (American Banker)
