Key Highlights
- The President is expected to name the nominee for FRB Chair by next week; the Senate Banking Committee conducted a confirmation hearing for the President’s nominee for Comptroller of the Currency.
- OCC says that federal and state banking regulators need to work together to address the growth of fintech and cryptocurrency firms; the federal banking regulators will soon release a statement on their “crypto sprint”.
- SEC says it will consider new regulatory requirements for principal trading firms, including registration, capital rules, record-keeping rules, and periodic examinations; staff will also consider registration requirements for trading platforms.
- SEC took actions to address proxy voting, including final rules related to contested elections, and proposed amendments to the rules governing proxy voting advice.
- Focus on climate-related financial risk seen in a BCBS consultative document on management and supervision, NYDFS guidance to insurers, and NAIC report.
- The infrastructure bill was signed into law containing provisions for new funding avenues to support ESG initiatives and new IRS reporting requirements for digital assets. (See KPMG Regulatory Alert)
- DOJ announced immediate changes to its corporate criminal enforcement policies and practices intended to strengthen its ability to hold individuals and corporations accountable for violations related to inadequate or deficient compliance programs and misconduct. (See KPMG Regulatory Alert)
- Federal agencies issued a final rule requiring banks to notify regulators of cyber incidents. (See KPMG Regulatory Alert)
Financial services regulatory and policy news
Banking
- Federal banking agencies (FRB, OCC, FDIC):
- Issued a final rule requiring bank notification of computer-security incidents
- FRB:
- Spoke about stablecoin and payments innovations
- Released research reports on:
- Macroeconomic implications of inequality and income risk
- Gender differences in bankcard credit limits
- OCC:
- Commented on modernizing the financial regulatory perimeter, including fintechs and crypto firms
- FDIC:
- Spoke about financial inclusion
- CFPB:
- Issued an RFI seeking input on HMDA rules
Capital Markets
- SEC:
- Issued rulemakings related to proxy voting:
- Adopted new rules for universal proxy cards in contested director elections;
- Proposed rule amendments to proxy rules governing proxy voting advice;
- Proposed rules to:
- Provide transparency in the securities lending market
- Update electronic recordkeeping requirements
- Spoke about:
- ESG risks and internal accounting controls
- Access to capital
- U.S. Treasury markets, highlighting consideration of regulatory requirements for PTFs and trading platforms
- CFTC:
- Issued an RFI on swap clearing requirements and the LIBOR transition
- Extended existing temporary no-action relief related to Brexit to provide continuity of derivatives trading and clearing activities
Other
- Senate Banking Committee:
- Held confirmation hearing for nominee for OCC.
- DOJ:
- Shifted policies to strengthen accountability and compliance investment
- FTC:
- Announced expansion of its criminal referral program
- Treasury:
- Announced a partnership to combat ransomware attacks
- FinCEN - Held an exchange on environmental crimes and related financial activity and issued a related notice
- FHFA:
- Clarified requirements regarding compliance with fair housing laws property appraisals
- BIS:
- BCBS proposed guiding principles for management and supervision of climate-related financial risks
- CPMI sought comment on payment system operating hours to enhance cross-border payments
Insurance
- NYDFS:
- Issued guidance to insurers on management of financial risks from climate change
- NAIC:
- Responded to FIO’s RFI on climate-related financial risks
- Released a report describing regulators’ efforts to manage climate-related risks and promote resiliency
- IAIS:
- Issued a statement on DE&I considerations in insurance supervision
- Consulted on liquidity metrics
Industry news headlines
(Some links may require subscription)
- Biden Hints at Fed Chair Pick Soon as Senators Rush to React (Bloomberg)
- U.S. Climate Risk Guidance Will Be in Line With Global Principles, Bank Regulator Says (WSJ)
- COP26 opens path to international carbon trading (WSJ)
- SEC to consider rules that boost transparency of high-frequency trading firms - SEC chair Gensler (Reuters)
- Big banks are raising cyber defences (Investment Executive)
