Insight

Washington Report 360 | October 8, 2021

FRB climate scenario analysis; CFPB Debt Collection Rule FAQs; DOJ National Cryptocurrency Enforcement Team; BIS/FSB stablecoin focus

Amy S. Matsuo

Amy S. Matsuo

ESG and Regulatory Insights Lead, KPMG LLP

Key Highlights

  • FRB stated that scenario analysis is a vital tool for assessing climate-related risks and suggested it may provide supervisory guidance for large financial institutions to measure, monitor, and manage these risks; the initial climate scenarios, like early stress testing, will inform subsequent modelling, data, and disclosure. FRB added that transition risk could be modelled in much the same way as economic modelling of policy changes.
  • CFPB published FAQs addressing compliance with the Debt Collection Rule and its implementing Regulation F, which goes into effect on November 30, 2021; the 27 FAQs cover limited-content messages and call frequency.
  • DOJ announced formation of a new National Cryptocurrency Enforcement Team (NCET) to pursue “complex investigations and prosecutions of criminal misuses of cryptocurrency, particularly crimes committed by virtual currency exchanges, mixing and tumbling services, and money laundering infrastructure actors.”
  • Consideration of regulations for stablecoin seen in BIS and FSB releases.

Financial services regulatory and policy news

Banking

Capital Markets

  • SEC:
  • Released statements on the potential risks of complex exchange-traded products (here and here)
  • Highlighted the World Investor Week 2021 investor education and protection focus, and released a joint agency bulletin outlining key topics such as ESG and digital assets
  • FINRA:
  • Updated FAQs on its advertising regulation and conducted a related virtual conference
  • Proposed order routing disclosure requirements for OTC equity securities
  • Encouraged firms to incorporate FinCEN’s AML/CFT priorities into their risk-based AML compliance programs
  • Released research on racial and ethnic disparities among investor households

Other

  • Treasury:
  • Released a statement on the EU-US joint financial regulatory forum, highlighting six themes including climate-related challenges and sustainability
  • Released its Climate Action Plan with five priority areas within Treasury’s operations
  • House FS Committee:
  • Held a hearing on the oversight of the SEC; Related testimony here
  • DOJ:
  • Announced the formation of a national cryptocurrency enforcement team
  • Announced a new civil cyber-security fraud initiative
  • FHFA:
  • Announced changes to better align its corporate governance structure with the issuance of mortgage-backed securities
  • FSB:
  • Published a progress report on regulation, supervision, and oversight of “global stablecoin” arrangements
  • BIS:
  • CPMI and IOSCO published preliminary guidance proposing stablecoin arrangements observe international standards for payment, clearing, and settlement systems
  • CPMI solicited ideas on solutions to expand FX payment-versus-payment settlement

Insurance

Industry news headlines

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