Key Highlights
- IFRS announced the formation of a new standards board, the ISSB, to develop “comprehensive” global baseline sustainability disclosure standards.
- An alliance of private financial companies pledged $130 trillion to finance global transition to net-zero emissions.
- OCC is planning to issue, by year-end, framework guidance on high-level climate risk management expectations for large banks.
- An interagency report on stablecoins highlights emerging risks and recommendations, including jurisdictional authority for insured depositories, SEC and CFTC, and other regulators.
- SEC Staff Legal Bulletin says certain shareholder proxy proposals may no longer be excluded, such as some ESG-types (e.g., human capital, climate-related targets).
Financial services regulatory and policy news
Banking
- FRB:
- Issued statement supporting the NGFS Glasgow Declaration; Related OCC statement
- OCC:
- Stated it is hoping to issue framework guidance on high-level climate risk management expectations for large banks by year end
- Spoke about modernizing banking regulation to “level up” the playing field for bank and non-bank financial services providers
- FDIC:
- Created a new office to support its ongoing engagement with MDIs and CDFIs
- CFPB:
- Released a report on consumer credit report disputes
Capital Markets
- SEC:
- Issued a Staff Legal Bulletin saying certain shareholder proxy proposals, including some ESG-type proposals, may no longer be excluded; Commissioner statements here and here
- Spoke about cybersecurity challenges
- Issued a statement on the registration deadline for security-based swap dealers
- Spoke about efficiency, fairness, and order in the U.S. market structure
- CFTC:
- Spoke about various topics including ESG and crypto/digital assets
Other
- Senate:
- Banking Committee conducted a hearing on the LIBOR transition
- Agriculture Committee advanced CFTC nomination to full Senate
- House FS Committee:
- Conducted hearings on:
- Risks and benefits of emerging BNPL and other fintech cashflow products
- The financial system, cyber threats, and consumer data
- Eliminating barriers to full economic inclusion
- Treasury:
- Released interagency report on regulation of stablecoins as part of the PWGFM; Related statements from OCC, CFPB, and SEC
- NYDFS:
- Announced formation of a new Climate Risk Division in supervision
- New law expands the NY State CRA to non-depository mortgage lenders
- FSB:
- Published a report on the progress and planned work to enhance the resilience of non-bank financial intermediation (NBFI)
- Published a progress report highlighting implementation gaps on effective compensation practices in financial institutions
Insurance
- NAIC:
- Participated in panel discussions as part of the COP26 Sustainable Insurance Series
Industry news headlines
(Some links may require subscription)
- Biden Administration to Cut Ties With Debt Collectors for Student Loans (WSJ)
- Climate Promises by Businesses Face New Scrutiny (WSJ)
- Financial System Makes Big Promises on Climate Change at Summit (WSJ)
- Carney’s Climate Group Hits $130 Trillion as Pledges Soar (BNN Bloomberg)
- SEC Chair Gensler likens crypto to early seed investing, warns many coins will fail (MarketWatch)
- Congress coalescing around need for LIBOR replacement bill (American Banker)
- SEC Rescinds Trump-era Policy, Eases Path for Shareholder Proposals on Environmental, Social Issues (WSJ)
